FDI declines by 7.6pc

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KARACHI: Foreign Direct Investment (FDI) fell by 7.6 per cent to $1,979 million during the first 11 months of FY25 compared to $2,142m in the same period last fiscal year, showed data issued by the State Bank on Tuesday.

FDI in May declined by 36 per cent year-on-year to $111m. The inflow in April was $140m, March $26m, February $94.7m and January $194m.

The FDI has been slow throughout the entire fiscal year despite some improved macroeconomic indicators and a stable currency rate.

The government is working to attract foreign investors by establishing the Special Investment Facilitation Council for this purpose. However, the results have remained almost negligible.The chances of improvement in the inflow of FDI are slim, particularly after the war in the region. It is not clear how long the Israeli aggression against Iran will continue, but the damage is already visible for FDI.

Published in Dawn, June 18th, 2025

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