Foreign investment in Pakistan faces a severe blow
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KARACHI: Foreign investment in Pakistan’s equities has declined by 83 percent to an estimated $1.4 billion since 2016, a recent study by a leading Pakistani brokerage house suggested on Monday, with financial experts attributing it to persistent economic and political instability and a US interest rate hike.
Foreign investment in equities through the Pakistan Stock Exchange (PSX) peaked to $8.2 billion in 2016 as the South Asian country displayed robust economic growth and currency stability.
However, political instability, triggered by the Panama Papers leak in 2016 that led to the ouster of former prime minister Nawaz Sharif, forced foreign investors to offload their positions in Pakistan.
The investment fell to $6.7 billion in 2017, $4.4 billion in 2018, $4.1 billion in 2019, $3 billion in 2020, $2.1 billion 2021, and $1.4 billion in 2022, according to a research report shared by the Karachi-based the Topline Securities brokerage house on Monday.
