The net Foreign Direct Investment (FDI) has plunged by 58.7 per cent during the current financial year (July-December FY23) as compared to corresponding period of FY22, Minister for Parliamentary Affairs Murtaza Javed Abbasi said Friday.
Replying to a query of Mushtaq Ahmed, during question hour in the Senate, he said the net FDI had decreased to $460.9 million from $1,114.8 million as compared to corresponding period of FY2021-22.
Quoting the State Bank of Pakistan (SBP) data of FY22, he said the net FDI stood at $1,867.8 million which was 2.6pc higher than corresponding period 2020-21 amount of $1,820.8 million.
While in the month of February 2022, the FDI decreased 33.7pc to $90.8 million from $137 million and net FDI during July-October 2022 decreased to 45.5pc to $396 million from $726.5 million.
Highlighting reasons of decline, he said Covid-19 pandemic, high cost of doing business in the country; macroeconomic pressures such as current account and balance of payment deficit; disruption in food supply and energy prices due to Ukraine war, were the major reasons of decline in FDI.
He said the government was taking all possible steps and making efforts to attract FDI into the country and facilitate investors. Business climate was being improved through initiatives such as Pakistan Regulatory Modernization Initiative and other sector reforms, he added.
The establishment of special economic zones (SEZs) was being supported to promote industrialization in the country. Issuance of visa, branch/liaison office, security clearance and airport entry passes were being facilitated, the minister added.
He said the government was also addressing investor grievances through a special Cell, connected to online Portal. Projects portal and incentives’ portal had been created on the Board of Investment’s (BOI) website for the facilitation of potential investors, he added.
