WEB DESK
China and the United Arab Emirates (UAE), the two leading global economies, emerged as the largest foreign investors in Pakistan in August, a month that saw foreign direct investment FDI grow by 88%.
Among different sectors of the economy, power, financial businesses and communication were on top as they attracted significant investment in their projects.
The flow of FDI into Pakistan increased 88% to $111 million in August compared to $59 million in July, the State Bank of Pakistan (SBP) reported in the wee hours of Thursday.
On a year-year basis, the inflow of FDI dropped 12% on a year-on-year basis. In the first two months of the ongoing fiscal year 2022-23, inflows declined by 26% on a year-on-year basis to $230 million.
FDI stood at $59 million in July 2022 and $230 million in August 2021, according to the central bank data.
“Foreign direct investment is the best source of money flowing into Pakistan from abroad. It is a non-debt creating instrument and can add to the productive capacity of the country if geared in the right sectors,” Dr Khaqan Najeeb, a former adviser to the finance ministry, told the media.
