KARACHI: For the first time in 25 months, net foreign direct investment (FDI) turned negative at $16 million in November on the back of outflows from the power and communication sectors, latest data released by the State Bank of Pakistan (SBP) showed on Wednesday.

Outflows from the power and communication sectors stood at $83.2m and $23.7m respectively whereas China and Norway divested $78.4m and $55.8m during the month under review.

In November, foreign portfolio offloaded stocks worth $39.9m compared to $37.08m in October. Foreign portfolio investment has been negative during the last 10 months since the spread of Covid-19.

On a cumulative basis, the SBP data showed FDI during the July-November period decreased by 17 per cent to $717m from $864.4m during the same period last fiscal year.

During the same period, China was the leading foreign investor in the country at $254m, followed by Malta $135m and Netherlands $100m.

“China continues to dominate the FDI inflow in the first five months of FY21. This is mainly due to the China-Pakistan Economic Corridor projects,” said the Overseas Investors Chamber of Commerce and Industry in a note.

Sector-wise, power attracted largest chunk of investment at $269m, financial business $135m, oil and gas exploration $100m and electrical machinery $56m.

Meanwhile, during the first five months of the current fiscal year, total foreign investment into the country —private and public — plummeted by 80.7pc to $389.3m from $2.02 billion in the last fiscal year.

Published in Dawn, December 17th, 2020