China has contributed over 23% of the total foreign direct investment (FDI) that Pakistan has received in the first five months of the ongoing fiscal year 2022-23, Gwadar Pro reported quoting Board of Investment (BOI). As the official statistics, in July-November 2022 (first five months of FY22-23), Pakistan received $102.5 million in FDI from China which is 23.83% of the total $430.1 million from all contributing countries. The statistics show that China continued to be the largest investor and biggest trade partner of Pakistan.
After China, UAE remains the second largest investor with $81.6 million while FDI from the Netherlands, Switzerland, and Hong Kong remains at $44.3 million, $22.7 million, and $ 22 million respectively. In the first five months of the current fiscal year, Pakistan received $13.3 million from the US. An FDI of $133.6 million has come from the rest of the world. In FY 2021-22 Pakistan received $531.6 million (28.46 % of the total) FDI from China while in FY 2020-21 despite the Covid pandemic Pakistan received $751.6 (41.3%) million FDI from China.
In Sector-wise FDI in July-Nov 22, the power sector received $204 million followed by the financial business and oil and gas sectors with $141.1 million and $40.2 million respectively. According to experts, since its launch in 2015, China-Pakistan Economic Corridor (CPEC) has remained a major stimulus for Pakistan to attract FDI. CPEC has laid a solid foundation for Pakistan’s economic development. Now, when special economic zones (SEZs) under the umbrella of CPEC are established, they will attract more FDI for Pakistan in the near future not only from China but also from other countries.
Credit: Independent News Pakistan-INP