Foreign direct investment falls in negative territory

Pakistan's net Foreign Direct Investment (FDI) stood negative at $16 million in November 2020 compared to positive $192.4 million in the same month of last year, data released by the State Bank of Pakistan showed.

FDI has become negative after a gap of two years, as power and telecom firms operating in Pakistan apparently had to transfer funds to their parent companies in China and Norway, respectively.

Short-term investors were, however, seen again making small investments in the government debt securities like treasury bills and Pakistan Investment Bonds (PIBs) in November.

Cumulatively, in first five months (Jul-Nov) of the current fiscal year (2020-21), net FDI dropped 17pc to $717.1 million compared to $864.4 million in the same period of last year.