Foreign direct investment (FDI) coming into the country plummeted by more than half to $430.1 million in the first five months (July to November) of the current fiscal year, the central bank data showed. The inflows were $884.9m during the same period a year ago. The data for November showed a similar drop, as FDI plunged 48pc to $81.8m from $158.4m in the same month last year.

The falling inflows reflect foreigners don’t consider Pakistan an attractive destination for investment at present amid economic and political uncertainty prevailing in the country since the beginning of the year. A fall in foreign direct investment inflows could be challenging for the country, which is already faced with low foreign exchange reserves. Continuous discussions in the media over the possibility of the country’s ability to pay back foreign loans have added fuel to the fire, making foreign investors wary.

Credit : Independent News Pakistan-INP