https://arab.news/bp7h7
- China remained largest contributor to Pakistan’s foreign direct investment with $568 million, says state media
- In recent months, Pakistan has actively pursued economic diplomacy by seeking enhanced trade, investments
ISLAMABAD: Pakistan’s foreign direct investment (FDI) saw an increase of 17% during fiscal year 2024, state broadcaster Radio Pakistan reported on Tuesday, amid Islamabad’s push to secure investments from regional allies to stabilize its fragile $350 billion economy.
In recent months, Prime Minister Shehbaz Sharif has actively pursued economic diplomacy in the region by seeking more investments and enhancing trade and regional connectivity for Pakistan. The South Asian country has sought to leverage its position as a transit and trade hub connecting landlocked Central Asian countries with the rest of the world. At the same time, Islamabad has pushed for mutually beneficial partnerships with Middle Eastern countries, particularly Saudi Arabia and the United Arab Emirates.
Pakistan has grappled with a macroeconomic crisis for the past two years that caused its reserves to dip to historic lows and its currency to significantly weaken against the US dollar. In June 2023, Pakistan established the Special Investment Facilitation Council (SIFC), a hybrid civil-military forum aimed to fast-track decision making and promote investment from foreign nations, particularly Gulf countries.
“There has been an increase of seventeen percent in foreign direct investment in the country due to the business-friendly policies by Special Investment Facilitation Council,” Radio Pakistan said in a report.
The state media said that as per the central bank’s figures, foreign investment reached $1.9 billion during fiscal year 2024 compared to $1.62 billion in the fiscal year before it. It said FDI increased to $169 million in June 2024 compared to $122 million in June 2023.
“China remained Pakistan’s largest investor and trading partner, with investments of 568 million dollars in the last financial year,” the state media said.
Hong Kong remained the second-largest investor in Pakistan during fiscal year 2024, with foreign direct investments of $359 million. Other countries who invested in Pakistan during the previous fiscal year include the United Kingdom, the United States and Singapore, Radio Pakistan said.