STAFF REPORT
ISLAMABAD: Foreign direct investment (FDI) refers to direct investment equity flows in the respective economy. The sum of capital, reinvestment of earnings, and other money is calculated to trace the number of FDI in the financial year.
Foreign direct investment (FDI) has been crucial in supporting developing economies to participate in global trade by facilitating the flow of capital, talent, and knowledge. We measure FDI’s impact on economic growth to understand its transformational power.
FDI is a category of global investment associated with one stable economy having significant control over capital management based in another economy.
Statistics of FDI in 2022
According to the State Bank of Pakistan (SBP), net foreign direct investment (FDI) in Pakistan fell by 52.1 percent during the first four months of the current fiscal year (FY23), totaling just $348.3 million.
FDI inflows were $514.5 million, while outflows were $166.2 million from July to October of FY23.
State Bank of Pakistan (SBP) reported that the Net FDI recorded in October 2022 is around $95 million, and it increased up to 13 percent in this FY 2022 but is recorded down by 62 percent in comparison with the same period last year.
1 Net Cash flow in Foreign Direct Investment in Pakistan monthly basis in FY 2022
Unit May Jun Jul Aug Sep Oct
Million USD 141.18 271.05 58.88 110.67 83.87 94.88
i. Cash Inflow in Foreign Direct Investment in Pakistan during a month
Unit May Jun Jul Aug Sep Oct
Million USD 167.31 293.36 114.21 133.58 147.53 119.20
ii. Cash outflow in Foreign Direct Investment from Pakistan Monthly basis
Unit May Jun Jul Aug Sep Oct
Million USD 26.13 22.31 55.34 22.91 63.66 24.32
Pakistan’s foreign direct investment for 2020 was $2.06B, a 7.92 percent decline from 2019.
Pakistan’s foreign direct investment for 2019 was $2.23B, a 28.61 percent increase from 2018.
Technological/IT Exports of Pakistan
Exports are the backbone of the economic relations of the nations. Exports lead the capital inflow and eliminate the budget deficiencies in an economy.
Pakistan has experienced numerous ups and downs cycles in exports since its independence due to a shortcoming in the economic policy of the country.
Eventually, Pakistan took taken the lead in Technological Exports, specifically in the Information Technology (IT) links exports.
Pakistan has become one of the world’s fastest-growing exporters of IT over the past ten years. It is one of the few sectors of the economy that the nation can directly benefit from without importing anything.
Statistics of Technological Exports in 2022
During October 2022, Pakistan’s Technological Export recorded $221 Million and has shown upwards of 13 percent in comparison to last year’s same period.
Information and communication technology (ICT) export remittances increased from $195 million reported for the same period last year to $221 million in October of this year, a 13.33 percent increase.
The State Bank of Pakistan (SBP) reported ICT export remittances of US$ 854 million for the period of July to October of FY2022-23, which represents an increase of 2.89%.
This is in contrast to the US$ 830 million recorded in the same period last year.
