Pakistan has secured a foreign direct investment (FDI) of USD 18 million from China during July 2023, the inaugural month of FY 2023-24. This substantial investment stands as a testament to the ever-strengthening financial partnership between the two countries and sets a promising tone for the fiscal year ahead. Gwadar Pro reported on Sunday quoting data released by the State Bank of Pakistan (SBP). The total inflow from China in July 2023 amounted to USD 33.9 million, while the outflow stood at USD 15.9 million. This resulted in a net inflow of USD 18 million from China. 

In July 2022, the net inflow from China was USD 7.1 million, while in the same period this year, it is USD 18 million, reflecting a remarkable increase in FDI from China compared to the first month of the previous fiscal year. The SBP’s data shows that in July 2023, the recorded total inflow reached USD 147.7 million, with an outflow of USD 60 million, resulting in a net FDI of USD 87.7 million. Notably, China’s contribution accounts for 16.36% of this total amount. In July 2022, the cumulative FDI for Pakistan was recorded at USD 60.9 million. According to Board of Investment (BOI) Pakistan’s latest figures, following China’s USD 18 million FDI in July 2023, China’s Hong Kong is the second prominent investor with an impressive investment of USD 16.9 million during the same period.

The Netherlands emerges as the third most significant investor, channeling an USD 12.1 million into various sectors.  Switzerland closely follows with an investment of USD 10.1 million. The United Arab Emirates contributed USD 8.3 million, while Japan provided USD 5.5 million in investment. The United Kingdom stands at USD 5.4 million, with the USA at USD 3.3 million.  Turkey’s investment amounts to USD 0.9 million. Additionally, there is noteworthy FDI of USD 7.2 million originating from various other partner countries.In July 2023, Pakistan saw a net FDI inflow of USD 7.8 million in the agriculture, forestry, and fishing sector, while the mining and quarrying sector received USD 12 million. 

The manufacturing sector secured USD 2.9 million, and a substantial USD 44.8 million flowed into the electricity, gas, steam, and air conditioning supply sector. Additionally, USD 2 million entered the construction sector, while USD 2.7 million and USD 2.1 million found their way into wholesale and retail trade, repair of motor vehicles and motorcycles, and transportation and storage sectors, respectively. Notably, the information and communication sector attracted USD 9.5 million, followed by USD 3.3 million in financial and insurance activities, and USD 1.4 million in administrative and support service activities. The remaining FDI has been received by various other sectors.  

Credit: Independent News Pakistan (INP) — Pak-China