Pakistan’s net foreign direct investment (FDI) decreased by 58.7% during the first six months of the ongoing financial year (July-December) 2022-23 compared to the corresponding period of 2021-22. Replying to a query during the question hour in the Senate, Minister for Parliamentary Affairs Murtaza Javed Abbasi said FDI decreased to $460.9 million in 6MFY23 from $1.1 billion in 6MFY22.

Quoting data for 2021-22 from State Bank of Pakistan, he said the net FDI stood at $1.86 billion in FY22, 2.6% higher than $1.82 billion in FY21. He said in February 2022, FDI decreased 33.7% to $90.8 million from $137.0 million. He added FDI during July-October 2022 decreased 45.5% to $396.0 million from $726.5 million over the same period of the previous year.

He said the major reasons for the decline in FDI included Covid-19 pandemic, high cost of doing business in the country, macroeconomic pressures such as current account and balance of payment deficits, disruption in food supply, and a rise in energy prices due to the Ukraine crisis.

Murtaza Abbasi said the government was taking all possible steps to attract FDI into the country and provide convenience to investors. “The business climate is being improved through initiatives such as Pakistan Regulatory Modernisation Initiative and other sectoral reforms,” he added.

“Establishment of special economic zones is being supported to promote industrialisation in the country,” he said, adding that foreign investors were being issued with speedy visas and airport passes, besides having prompt security clearance. The federal minister said the government was also addressing investor grievances through an online portal. “Projects portal and incentives’ portal have been created on the Board of Investment website for the facilitation of potential investors,” he added.

Credit: Independent News Pakistan-WealthPk