Foreign Investment in Pakistan Increased in First Quarter of Fiscal Year 2023-24

 


Pakistan has witnessed an increase in foreign investment during the first quarter of the current fiscal year 2023 to 2024. According to Radio Pakistan, the foreign investment increased by 48% in July to September 2022 compared to the same period last year. This shows the effective strategies used by the government to attract more foreign investment. 


China was the top investor country as it invested $404 million in this period. Investments from other countries included Saudi Arabia $1.8 million, UAE $25 million, Hong Kong $98 million, UK $72 million and USA $28 million. Prime Minister Shehbaz Sharif visited Saudi Arabia and Qatar recently where he signed several investment deals worth billions of dollars. This will surely boost investment from these friendly countries in Pakistan.


The government formed Special Investment Facilitation Council (SIFC) in 2023 to fast track investments in key sectors. SIFC is a dedicated body to facilitate investors. Their support and incentives have encouraged more foreign companies to explore business opportunities in Pakistan. Several agreements were also signed during PM's recent visits to Gulf nations which will enhance investments.


Besides investments, Pakistan enjoys close economic ties with Saudi Arabia and UAE. Both are major trading partners of Pakistan. UAE is an important destination for Pakistani exports. Several Pakistani companies have investments and business ventures in UAE. The short distance is beneficial for trade. Cooperation in other areas like energy, manpower export, infrastructure and finance is also expanding between the countries. 


Increase in foreign investment is positive news for Pakistan's fragile economy. The inflow of investments from friendly nations shows the confidence of international investors in Pakistan's potential. It will help address the economic challenges and provide support to the balance of payments. The government needs to continue facilitating investors and building goodwill through diplomatic channels to promote FDI into priority sectors of the country.


In conclusion, the increase in foreign investment during the recent quarter is an encouraging sign. With more investment agreements signed during recent state visits and effective investor facilitation measures, inflows are expected to rise further in the coming quarters. This will boost economic growth and development in Pakistan.

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