LAHORE – Pakistan economy faces setback over Foreign Direct Investmentfront as the FDI nosedives in Pakistan.
Serious concern over the falling trend of foreign direct investment (FDI)into the country, which has plunged by over 58 percent during the first twomonths of the new fiscal year 2019-20.
The APBF president Syed Maaz Mehmood has said that drastic steps and robustpolitical will could revive the economy so it could grow significantly andconstantly while displaying a visible impact. Mahmood advocated the needfor widening the country’s tax base in a bid to uplift tax-to-GDP ratiofrom its current poor level.
On a month-on-month basis, the FDI inflows in August declined by a massive57.8 percent to $83.4 million from $198 million in August 2018. Headvocated the need for raising the country’s tax base so that tax-to-GDPratio improves from current poor level.
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The State Bank of Pakistan’s data shows that slowdown of inflows from Chinahave brought down the overall FDI figure, as inflows from Beijing duringJuly-August fell to $28.9 million compared to $216 million whereas inflowsduring August clocked in at $33.4 million. United Kingdom emerged as thesecond leading investor in the country pouring $11.7 million, followed byUAE with $6 million and Malaysia $5.4 million.
