Foreign direct investment (FDI) inflows grew by 10% in February despite an atypical scenario on the economic and political fronts, although they decreased by almost 40% over the previous eight months.
According to figures provided on Monday by the State Bank of Pakistan, FDI in February totaled $100.9 million, up from $90.8 million in the same month the previous year. Due to economic weakness and political unpredictability, FDI has been dropping since the start of the current fiscal year.
China was at the top of the list because its inflow of $22.7 million last month was the greatest. According to the data, China brought in the most foreign direct investment (FDI) from July to February of FY23 ($222.8 million), although this was less than the $366 million brought in during the same period last year.
The other two big inflows came from Switzerland ($123 million) and Japan ($134 million). The total amount of FDI inflows during the first eight months of the current fiscal year FY23 decreased by 40.4 percent to $784.4 million from $1315 million during the same period last year.
The Pakistani rupee has been fighting to stay within the current range of Rs280 against the US dollar, but rising demand and inadequate foreign exchange reserves are driving the rupee down.
The PKR lost 2.32 rupees to the dollar on Monday, a considerable decline given that the exchange rate is already at its highest level. The SBP said that the dollar’s interbank closing price was Rs284.03 as opposed to Rs281.71 from the previous session on March 17.
Since the Pakistani rupee is depreciating worldwide due to negative information reaching other countries, currency dealers anticipate further devaluation.
