KARACHI: Pakistan received only $1.7 billion in foreign direct investment (FDI) during the first 11 months of the outgoing fiscal year.

The State Bank of Pakistan (SBP) on Friday reported that FDI rose 14.9 per cent, or $224 million, to $1.728 billion in July-May FY24 from $1.504bn in the same period last year.

Pakistan remains the most neglected country in the region as far as foreign investment is concerned. However, for the last two and a half years, continued political uncertainty has played a key role in keeping investment at the lowest level.

The State Bank’s data shows that the inflows in May were much higher than last year. The country received $271m in May compared to $141m in the same month last year.

On June 20 2023, the government took a significant step towards attracting more investments by approving the establishment of the Special Investment Facilitation Council (SIFC).

The council, acting as a ‘single window’ to facilitate investors, aims to establish cooperation among all government departments and fast-track project development.

Headed by the prime minister and with members including federal ministers, provincial chief ministers, and the army chief, the SIFC is a testament to the government’s commitment to capitalising on Pakistan’s untapped potential in key sectors of defence production, agriculture, mining, information technology and energy through domestic and foreign investments.

However, the SIFC could not successfully attract foreign investments to the country. Experts said higher foreign investments are possible, particularly by privatising important state-owned enterprises like PIA.

Published in Dawn, June 22nd, 2024