KARACHI: Net foreign direct investment (FDI) turned negative at $16 million for the first time in 25 months in November on the back of power and connectivity sector outflows, the latest data released by the State Bank of Pakistan (SBP) showed on Wednesday.
Power and contact outflows stood at $83.2 million and $23.7 million respectively, while China and Norway divested $78.4 million and $55.8 million during the month under review.
In November, stocks worth $39.9 million were dumped by the international portfolio, compared to $37.08 million in October. During the last 10 months since the spread of Covid-19, foreign portfolio investment has been negative.
On a consolidated basis, during the July-November period, the SBP data shows that FDI decreased by 17% to $717m from $864.4m during the same period last fiscal year.
During the same time, at $254m, China was the country’s leading foreign investor, led by $135m from Malta and $100m from the Netherlands.
In the first five months of FY21, China appears to dominate the FDI inflow. This is primarily attributed to the initiatives of the China-Pakistan Economic Corridor,” said the Chamber of Commerce and Industry of Overseas Investors in a note.
Sector-wise, power gained the biggest chunk of funding at $269 million, $135 million for financial industry, $100 million for oil and gas exploration and $56 million for electrical machinery.
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Meanwhile, gross foreign investment in the country, private and public, plunged by 80.7pc to $389.3m during the first five months of the current fiscal year from $2.02 billion in the last fiscal year.