In a significant economic development, Foreign Direct Investment (FDI) in Pakistan surged by an impressive 172 percent year-on-year in April 2024, according to data released by the State Bank of Pakistan (SBP). The inflow for April reached $358.8 million, a stark increase from the $132 million recorded in April FY23. This also marked a 39 percent rise from March’s $258 million.
China emerged as the largest investor, contributing $177 million in April alone. For the July-April FY24 period, Chinese investments totaled $439.3 million, though this was a decrease from $604 million during the same period last year. Following China, the United Arab Emirates and Canada were the next largest investors, with investments of $51.93 million and $51.89 million, respectively.
The power sector continued to be the primary attraction for foreign investors, drawing in $637.5 million in FDI during the July-April FY24 period. This figure, however, represented a decline from $776.2 million the previous year. Within the power sector, Hydel Power projects were particularly appealing, attracting $460 million this year compared to $338 million last year.
In a separate economic report on Wednesday, it was revealed that Pakistan’s per capita income saw a notable increase, reaching $1,680 in FY2023-24. Data from the Pakistan Bureau of Statistics (PBS) highlighted that the national economy’s size expanded from $341 billion to $375 billion during the ongoing fiscal year. The annual per capita income of Pakistanis increased by Rs 90,534, with a monthly increase of Rs 7,544.
These positive economic indicators reflect a growing confidence in Pakistan’s investment environment and economic stability. The surge in FDI, particularly in the power sector, and the rise in per capita income are seen as encouraging signs for the country’s economic future.
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