The foreign investment inflows surged to over $1 billion during the firstquarter of the financial year 2021-22 mainly due to receipts under Sukukraised by the government.
According to the State Bank of Pakistan (SBP), the foreign investment stoodat $1.3 billion during the three months period, July to September, ascompared to the investment of $311 million registered in the same period ofthe last year, showing a staggering growth of 323% year-on-year (YoY).
The foreign investment on the account of portfolio investment surged to$979 million against the outflows of $37.4 million registered in the sameperiod of the last year.
On the other hand, foreign direct investment (FDI) in the real sector stoodat $439 million during the first quarter of 2021-22 which is less than 4%as compared to the FDI numbers during the same period of the first quarterof the last year.
The investment in the real estate sector remained low due to the foreigninvestors’ cautiousness about the economic instability in the country inview of the poor situation of businesses after the outbreak of COVID-19.The situation is likely to improve in the coming months as the COVID-19vaccination drive has reduced the virus positivity rate.
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China has been the major investor in the country with an investment of $74million during the first quarter of FY 2021-22. Investments from the USAand the Netherlands stood at $72 million and $60 million respectively.
The top sector that received investments is the power sector with aninvestment of $131 million. It is followed by financial businesses with$100 million and the communication sector with $88 million.
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