In a promising sign for Pakistan's economic landscape, foreign direct investment (FDI) recorded a substantial upswing in August 2023, reaching $146.1 million.
The latest data from the State Bank of Pakistan (SBP) reveals a remarkable 66.61% month-on-month increase, further highlighting the nation's appeal to foreign investors. In comparison to the same period the previous year, FDI in August 2023 also registered a notable uptick of 15.44%.
Breaking down the FDI figures for August, the data shows that there was an inflow of $197.6 million, reflecting a significant 37.8% year-on-year increase. Simultaneously, the outflow surged to $51.5 million, marking a substantial rise of over 2.06 times compared to the previous year.
Within the realm of portfolio investment under FDI, an inflow of $6.4 million was recorded through equity securities, a notable shift from the net selling of equity securities worth $10.5 million in August 2022.
Foreign private investment
Foreign private investment in Pakistan experienced a substantial boost, reaching $152.5 million in August 2023. This figure indicates a robust 31.34% year-on-year increase when compared to August 2022 when it stood at $116.1 million.
On the other hand, foreign public divestment amounted to $2.1 million during the review month, adding a layer of complexity to Pakistan's foreign investment landscape.
Cumulative FDI growth
Looking at the bigger picture, on a cumulative basis for the first two months of FY24, FDI increased by 31.79% year-on-year, reaching $256.5 million.
This figure surpasses the FDI recorded in the corresponding period the previous year, which was $194.6 million.
Promising economic indicator
These FDI figures serve as a promising economic indicator for Pakistan, demonstrating the nation's ability to attract foreign capital despite the prevailing global economic uncertainties. The increase in FDI reflects the confidence that foreign investors have in Pakistan's economic prospects and potential for growth.
As Pakistan continues to implement reforms and open up opportunities for investors, it remains poised to further strengthen its position as an attractive destination for foreign investment in the region.
