Pakistan recorded a significant decline in net foreign direct investment (FDI) in February, with inflows dropping to $95 million, a 45% decrease compared to $194 million in the same month last year, according to data released by the State Bank of Pakistan (SBP).
In January, FDI was reported at $194 million, showing a sharp monthly decrease in February. Despite this drop, Pakistan experienced a positive trend in the broader fiscal year.
Net FDI inflows increased by 41% in the first eight months of the fiscal year, reaching $1.62 billion, compared to $1.14 billion during the same period last year.
The government’s recent reforms and the creation of the Special Investment Facilitation Council (SIFC) are seen as major steps toward attracting foreign investment.
The SIFC aims to provide a more conducive environment for investors, with a focus on engaging regional players, including Gulf countries, Turkey, and China.
The United Arab Emirates recently pledged $10 billion in investments across multiple sectors, while Saudi Arabia is fast-tracking its $5 billion investment plans, primarily targeting the minerals sector, including the Reko Diq project.
An analyst from Arif Habib Limited emphasized that while these commitments indicate growing interest in Pakistan's economic potential, the real challenge lies in the timely execution of these investments to maximize their impact on foreign investment flows.
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