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FDI Rises 32% to $904m in FY25, but Concerns Persist Over Investor Confidence
FDI in Pakistan rises 32% to $904M in FY25, but challenges like security concerns and low regional inflows still weigh on investor confidence.
ND
by News Desk
2024-11-19
FDI Rises 32% to $904m in FY25, but Concerns Persist Over Investor Confidence

Attracting substantial foreign investment remains a persistent challenge for successive governments, despite steady percentage increases in inflows. The State Bank of Pakistan (SBP) reported on Monday that Foreign Direct Investment (FDI) rose by 32% during the July-October period of FY25, reaching $904 million compared to $683 million in the same period last year.

Despite the rise, experts term the volume of FDI as insufficient to drive meaningful economic progress. October witnessed a significant drop in inflows, plunging nearly 20% year-on-year to $132 million, reflecting ongoing struggles to attract foreign investors amid unfavorable economic conditions.

China emerged as the leading contributor, accounting for $414.5 million, or 46%, of the total FDI during the period. Other notable inflows included $99.7 million from Hong Kong and $94 million from the United Kingdom.

However, trade and industry experts cited the deteriorating law and order situation as a significant barrier to attracting foreign investors. The frequent bombings and unrest in Balochistan, Khyber Pakhtunkhwa, and other regions continue to overshadow government efforts, which include offering several incentives to foreign businesses.

The disappointing FDI inflows underscore the need for comprehensive measures to improve security and economic stability, which are crucial to rebuilding investor confidence in Pakistan’s economic potential.

 
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FDIinPakistan

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