Foreign direct investment fell sharply by 38.7 per cent during the first month of the new fiscal FY22 compared to July FY21, following the declining trend noted in the previous fiscal year.
The State Bank’s latest data issued on Tuesday showed that the country received only $90 million as FDI during July against an inflow of $128.7m in the same month of the previous fiscal.
The beginning of the new fiscal did not show any improvement against the trend dominated by the previous fiscal FY21 as it fell by 29 per cent: the country received $1.847bn in the last fiscal year.
The data also shows the inflow from China was drastically low compared to last year. Pakistan received $6.6m in July from China while the inflow was $44.1m in July FY21. This poor inflow is the real reason for the over 38 per cent decline in July. China has been the largest investor for the last several years. In fact, no country invested like China for more than five years.