Pakistan’s FDI inflows have declined, with India recording the highest FDI inflows, the report said

Pakistan's FDI inflows have declined, with India recording the highest FDI inflows, the report said

Where it is easier to do business in Pakistan, FDI stocks are also declining. (Representative)


Year after year, foreign direct investment data draws a sharp contrast between Pakistan’s 2022 flat FDI inflows and India’s highest FDI inflows for the current year at 83 83.57 billion.

The FDI situation in Pakistan is a sad story. Although Pakistan recorded a growth of more than 660 per cent per month in April 2022, the year-on-year growth reflects the country’s deplorable situation.

According to news agency ANI, year-over-year numbers show that foreign direct investment in April 2022 increased by only 0.9 percent compared to April 2021, and overall, FDI declined in the first ten months of fiscal 2022. 1.6 percent a year, Business Recorder reported.

In addition to flat growth compared to the previous year with a small base of net FDI in April 2022, the flow in April decreased by 21.6 percent and decreased by 89.6 percent compared to the year before.

This suggests that the total inflows in April 2022 were also low which is certainly not a good sign for FDI in Pakistan.

So far the same situation is visible in the overall FDI in FY22. In the first ten months of fiscal 2022, foreign investment inflows declined by 16.2 percent, while outflows declined by 35.81 percent year-on-year.

The overall picture of foreign investment in the country has not changed much in the long run, especially after the completion of CPEC projects and the inflow of money from China began to decline.

Also, the lack of diversification and the failure to increase export-oriented FDI are other reasons for the decline in FDI in Pakistan, according to media portals.

Additionally, annual FDI inflows have declined, but FDI stocks are also declining where ease of doing business and tax policy also create a barrier, according to media portals.

(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)

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