Pakistan sees 64.3% plunge in foreign investment despite reform push

Foreign direct investment (FDI) in Pakistan dropped 64.3% in April, totaling $141 million compared with $394.5 million in the same month last year, according to official data.

For the ten months of the fiscal year, total FDI stood at $1.78 billion, marking a 2.8% decline from $1.84 billion recorded in the previous year.

The highest inflows were observed in the finance sector at $56.7 million, followed by $25.3 million in oil and gas, $22.9 million in power generation, and $10 million in the food sector.

China remained the leading contributor to FDI in April, with net flows of $26.8 million, followed by $23.4 million from the United Kingdom and $21.4 million from Hong Kong.

Earlier this month, Pakistan’s Finance Minister Muhammad Aurangzeb and Adviser to the Prime Minister on Privatisation Muhammad Ali visited London for a two-day trip aimed at engaging top international financial institutions. The initiative is part of the government’s ongoing efforts to attract foreign investment by implementing structural reforms and improving macroeconomic stability.

Officials hope that by opening key sectors to foreign investors, Pakistan can spur economic growth and create new opportunities for employment and innovation.