fdi: Pakistan: Foreign direct investment declines by 12 percent in July-October of the current fiscal year

ISLAMABAD: Foreign direct investment (FDI) in Pakistan fell by 12 percent in the first four months of the current fiscal year.
In real terms, FDI inflows stood at $ 662 million during the quarter, from July to October compared to $ 750.6 million in the same period a year ago, Pakistan Newspaper Dawn reported data released by the State Bank on Wednesday.
In October, inflows plunged 24% to $ 223m from $ 293m in the same month in 2020.
The FDI downturn comes at a time when the Pakistani government is in dire need of foreign inflows and is in negotiations with the International Monetary Fund for the resumption of lending, Dawn reported.
Meanwhile, Pakistan-China’s largest trading partner’s inflows also fell sharply to $ 116.5 million in July-October from $ 399.5 million in the same period in the same period in 2020.
In addition, the Pakistani rupee has also seen a fall against the U.S. dollar in the interbank currency market for months, a growing concern for the Imran Khan government indicating that the country is facing a deeper economic problem, local media reported.
The Pakistani rupee closed at an all-time low of US $ 175.73. The rupee has lost 13.34 per cent and 10.35 per cent since May 14 and July 1, respectively.
Despite the State Bank of Pakistan’s brakes on imports and the purchase of the green dollar from the open market, the rupee has declined against the US dollar.

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