ISLAMABAD: Foreign direct investment (FDI) in Pakistan witnessed phenomenal growth, with a substantial increase of 172% in April 2024 compared to the same period of the previous fiscal year.
According to data released by the State Bank of Pakistan (SBP), FDI inflows reached $358.84 million, a significant increase from $131.9 million in April FY23.
Additionally, on a month-on-month basis, April saw a significant increase of 39 percent in FDI as compared to March 2024, where inflows were $258.04 million. The increase is the highest monthly FDI inflow in 51 months, reflecting growing investor confidence in Pakistan’s economy.
Gross FDI for the first ten months of FY24 stood at $1.46 billion, showing appreciable growth from the $1.35 billion recorded during the same period in FY23.
Looking at the details, China emerged as the leading investor in Pakistan in April 2024, adding a substantial $177.37 million to the economy.
During the same period, the United Arab Emirates (UAE) and Canada contributed $51.93 million and $51.89 million, respectively.
A sector-wise analysis shows that the power sector attracted the highest FDI inflow during April 2024, amounting to $194 million. This indicates the attractiveness of the sector to foreign investors and its important role in the economic development of Pakistan.
An increase in FDI reflects positively on Pakistan’s economic landscape, increasing investor confidence and potentially paving the way for further economic growth and development initiatives.