The State Bank reported that the FDI fell to just $24 million in July from $119m in the same month last year.
Banks’ over 80pc liquidity has been lying with government papers which damaged the role of private sector.
The SBP reserves are expected to fall further as the bank paid about $147m to the International Monetary Fund (IMF).
The currency dealers argued that this was due to large payment of $147 million to IMF and about $100m for oil import.
With the beginning of Ramazan, dollar fell to below Rs99 and most of the time kept hovering around Rs98.50.
A report of the SBP showed the domestic debt rose by 44.2pc in FY14 reflecting the poor health of the economy.
Banks investing over 80pc deposits into the government papers, while depositors were facing continuous high inflation.
Private sector borrowing in Punjab declined to Rs1,295 billion till Dec 2013, while it borrowed Rs1,200bn in Sindh.
For more than six months the investors are glued with the short-term papers fearing a change in the interest rate.
Karachi was hit by 8.5pc inflation in June, second lowest in the list.
Eid spending turned into heavy withdrawal from banks which created a cash crunch in the banking system.
Keeps the hope alive for the country to fetch around $2 billion during the holy month
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State Bank revealed that rising imbalances on every front pushed up the deficit despite high inflows during the year.
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Among the top 15 contributors to CIP inflation, electricity was the biggest contributor after education.
The government increases cut-off yields on Pakistan Investment Bonds to encourage banks to invest in long-term papers.
The sudden rise in the total foreign investment was due to $2.1bn investment in the Eurobond.
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