ISLAMABAD – In another positive economic development, $2 billion injectedin Pakistani economy.
Pakistan has continued to receive handsome inflows and the net ForeignDirect Investment (FDI) crossed the $2 billion mark in the first fivemonths of the financial year 2019-20.
The net FDI inflows during the period of July to October recorded at $1.102billion, as inflows of $904 million received in the subsequent month ofNovember the overall net FDI surged to $2.006 billion in the first fivemonths of 2019-10, according to the State Bank of Pakistan (SBP).
Last year, the overall FDI received by the country stood at $146.7 millionduring the five months period thus the net FDI showed 1,267 percent growthyear-on-year.
The net FDI comprises two heads—FDI in the real sector and FPI (ForeignPortfolio Investment)– both of which recorded positive growth in the saidperiod.FDI Records Staggering Growth of 78%
FDI in the real sector, a part of the net FDI, registered a staggeringgrowth of 78 percent year-on-year during the period of July to November2019. It increased to $850 million this year as compared to thecorresponding period of last year in which it stood at $477 million.
Read Top Stories
FDI from Norway recorded the highest value of $344 million due to theinvestment of Telenor Pakistan. It was followed by China with an investmentof $142 million for the ongoing projects under China-Pakistan EconomicCorridor and UK with over $100 million.
Telecommunication is the leading sector with the highest value of FDI, thatis, $280 million. It is followed by electrical machinery, oil and gasexploration, and power sectors.FPI Receives Handsome Inflows
The foreign investors are doing their investment in short-term governmentbonds mainly in T-bills, which received historical high investment for thefirst time this year. Foreign Portfolio Investment (FPI) received handsomeinflows of over $1 billion during the period of July to November 2019.
