The State Bank of Pakistan (SBP) has reported a significant decline in foreign investment in the fiscal year 2023. According to the SBP, the total foreign funds received during this period amounted to US$ 427.1 million, marking a 77% decrease compared to the previous fiscal year. Additionally, foreign direct investment (FDI) also experienced a decline of 25%.
A closer look at the report reveals that the private sector of Pakistan received US$ 1.43 billion in foreign investments, experiencing a 7% decline. On the other hand, the public sector received US$ 1.01 billion in investments.
The State Bank of Pakistan’s report further indicates that the country’s total liquid foreign reserves reached US$ 13,534.1 million, with US$ 8,186.1 million held by the central bank.
However, the SBP also highlighted a decrease of US$ 541 million in its reserves, attributing it mainly to external debt repayments during the week ending on July 21, 2023. Meanwhile, net foreign reserves held by commercial banks amounted to US$ 5,348 million. The total liquid foreign reserves held by the country in the week ending July 14, 2023, were US$ 14,065.3 million, with US$ 8,727.2 million held by the central bank and US$ 5,338.1 million held by commercial banks.
This decline in foreign investment calls for further analysis and understanding of the current economic climate in Pakistan. It is crucial for policy planners and stakeholders to identify the factors contributing to this decrease and implement appropriate measures to promote foreign investments in the country.