KARACHI: Foreign investment in Pakistan’s equities has declined by 83percent to an estimated $1.4 billion since 2016, a recent study by aleading Pakistani brokerage house suggested on Monday, with financialexperts attributing it to persistent economic and political instability anda 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 robusteconomic growth and currency stability.
However, political instability, triggered by the Panama Papers leak in 2016that led to the ouster of former prime minister Nawaz Sharif, forcedforeign investors to offload their positions in Pakistan.
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The investment fell to $6.7 billion in 2017, $4.4 billion in 2018, $4.1billion in 2019, $3 billion in 2020, $2.1 billion 2021, and $1.4 billion in2022, according to a research report shared by the Karachi-based theTopline Securities brokerage house on Monday.
