KARACHI: Pakistan attracted foreign direct investment (FDI) of $280 million in November 2018 with China being the single heavy investor, State Bank of Pakistan (SBP) reported. The inflows were 17 percent higher than the $239.5 million received in November 2017.
China alone invested a net $249.1 million, which makes up 89 percent of the total $280 million received in the month. It has invested the funds in Pakistan’s construction and power sectors.
The return of stability in rupee against the dollar is a must to attract foreign direct investment from other than China and other friendly countries, analysts say.
FDIs are expected to remain on the higher side in the remaining seven months of the current fiscal year, considering some other friendly countries have expressed their intentions to invest heavily in power, petroleum refinery, and oil and gas exploration sectors.
According to the SBP, Pakistan attracted $3.09 billion FDI in the previous fiscal year 2018, ended June 30.
Cumulatively in five months (July-November 2018) of the current fiscal year, FDI stood at $880.7 million, which is 35 percent lower than $1.36 billion attracted in the same five months last year.
South Korea appeared the second highest investor with net $15.9 million in November 2018. It was followed by the United Kingdom and the United States, who invested net $14.5 million and $11 million, respectively, in the month.
However, Norway and Malta divested net $34.8 million and $11.7 million respectively.
Electrical machinery witnessed the single largest inflow of FDIs (net) worth $119.1 million, followed by the power sector at $62.2 million. The construction sector attracted $55.9 million, while financial business received $14.4 million in the month.
Communication sector, which had continued to attract significant investment for quite a long time, witnessed a net outflow of $41.6 million in the month. This was the second month in a row the sector has witnessed divestment.