Pakistan attracted $120 million in net foreign direct investment (FDI) from China during July-August of the current fiscal year, making up 32.9 percent of the country’s total $364.3 million inflows, Gwadar Pro reported on Friday quoting State Bank of Pakistan’s latest report. In August alone, China contributed $68.6 million out of Pakistan’s $156.2 million net FDI, representing 43.9 percent of the monthly inflows. By comparison, combined investment from all other countries stood at $244.3 million in July-August and $87.6 million in August.

Sector-wise, the power sector was the largest recipient of foreign investment, drawing $156.9 million in the first two months. Financial business followed with $110.2 million, while electrical machinery attracted $25.8 million and electronics $1.7 million. Among other partner countries, the United Kingdom invested $31.8 million, the United Arab Emirates $32.9 million, Switzerland $37.8 million, and the United States $7.1 million. Pakistan also attracted net FDI of $26.8 million from China’s Hong Kong in August.

While these inflows show some diversification, China remained the single largest contributor, accounting for nearly one-third of total inflows in the first two months and close to half in August alone. The momentum is expected to grow following high-level exchanges. Prime Minister Shehbaz Sharif’s recent six-day visit to China saw the signing of 21 MoUs and joint ventures worth $8.5 billion, formally launching CPEC’s second phase.

Meanwhile, President Asif Ali Zardari this week oversaw three MoUs focused on agriculture, vocational training, and environmental sustainability.

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