Karachi: There has been a significant increase in foreign investment in Pakistan during the first quarter of the current fiscal year. From July to September, total investment reached $3.65 billion, in which the public sector and international bonds played a significant role.
According to data provided by the State Bank, foreign investment recorded an increase of more than 750% on an annual basis. Investment in the private sector also increased, but its share compared to the total amount remained relatively limited.
During the first quarter, foreign investment of $690 million was received in the private sector, which is 44% more than the same period last year. On the other hand, the volume of investment in the public sector was $2.89 billion.
An important aspect of the increase in investment is Pakistan’s regaining access to global financial markets. Pakistan had issued a two-part Eurobond of $3 billion in September.
However, the increase in foreign investment should not be interpreted solely as foreign companies investing in businesses or industries in Pakistan. Investment in government bonds can also be part of the overall foreign investment figure, while foreign direct investment is a separate measure.
Therefore, it will be important to monitor the nature of investment, its continuity and the pace of real investment in the private sector in the coming months. Foreign capital inflows can help meet financing needs, but long-term investment in productive sectors is also necessary for sustainable economic gains.
