Pakistan’s foreign direct investment increases by 172% in April

ISLAMABAD: Foreign direct investment (FDI) in Pakistan witnessed phenomenal growth, with a substantial increase of 172% in April 2024 compared to the same period of the previous fiscal year.

According to data released by the State Bank of Pakistan (SBP), FDI inflows reached $358.84 million, a significant increase from $131.9 million in April FY23.

Additionally, on a month-on-month basis, April saw a significant increase of 39 percent in FDI as compared to March 2024, where inflows were $258.04 million. The increase is the highest monthly FDI inflow in 51 months, reflecting growing investor confidence in Pakistan’s economy.

Gross FDI for the first ten months of FY24 stood at $1.46 billion, showing appreciable growth from the $1.35 billion recorded during the same period in FY23.

Looking at the details, China emerged as the leading investor in Pakistan in April 2024, adding a substantial $177.37 million to the economy.

During the same period, the United Arab Emirates (UAE) and Canada contributed $51.93 million and $51.89 million, respectively.

A sector-wise analysis shows that the power sector attracted the highest FDI inflow during April 2024, amounting to $194 million. This indicates the attractiveness of the sector to foreign investors and its important role in the economic development of Pakistan.