KARACHI: Foreign Direct Investment (FDI) surged 172 per cent year-on-year in April, but the overall inflow increased by just 8pc in the first 10 months of the current fiscal year.

The inflow in April was $358.8m compared to $132m in April FY23, a jump of 172pc. However, it was 39pc higher than March’s $258m, according to data from the State Bank of Pakistan (SBP) on Friday.

The FDI rose 8.1pc to $1.458 billion during July-April FY24 compared to $1.349bn in the same period last fiscal year, but it is still not significant since the inflow is too small for an economy with 240 million people.

The biggest investor was China, as the FDI from the country during July-April FY24 was the highest, with $439.3m compared to $604m in the same period last year. An investment of $177m came from China alone in April.

Another important inflow was from Hong Kong, where FDI increased to $297.9m compared to $206m in the same period last year.

Inflows from the UK and the USA were $219m and $216m, respectively, both of which noted increases compared to last year.

The biggest attraction for foreign investors during July-April FY24 was the power sector. The FDI in the power sector during this period was $637.5m, up from $776.2 m last year. Hydel Power attracted $460m this year compared to $338m last year.

The finance and business sector inflow decreased to $169m compared to $243m in the same period last year. However, the FDI for oil and gas exploration increased to $192.5m compared to $114m of the last year.

Published in Dawn, May 18th, 2024