Pakistani expatriates send money to Pakistan for investment in 2021 is remarkable. But, unfortunately, Pakistan is on the verge of a financial disaster. Foreign investment into the economy fell 32.5 percent to USD 1.55 billion in the first ten months of the current fiscal year. According to The Express Tribune, foreign investment into various areas of Pakistan’s economy, such as power, telecommunications, and oil and gas exploration, remained minimal in the first ten months of the current fiscal year, totaling 1.55 billion dollars.
Money transfers to Pakistan for Foreign direct investment (FDI) in Pakistan fell by 30% in the first eight months of the current fiscal year, according to the State Bank of Pakistan (SBP). The drop is substantial, and it should create anxiety in official circles. However, one could argue that comparing this year’s FDI to the prior fiscal years isn’t the best way to assess the government’s efforts.
As the epidemic slowed the global economy, it was only natural to see FDI decline. FDI inflows, on the other hand, have been declining since 2017. Of course, there was no such thing as a pandemic back then. As the global economy begins to revive, our policies must be seriously revised in order to attract FDI.
What Analyst Has To Say About Foreign Direct Investments In Coming Near Future?
As online money transfer to Pakistan is increasing by 10th consecutive months. Analysts are hopeful about FDI inflows in the coming fiscal year. The IMF program’s restoration, as well as Pakistan’s economic recovery from the Covid-19, are expected to enhance global investor confidence in the country’s economy. As a result, this fiscal year’s gross domestic growth is expected to be close to 4%, according to the National Accounts Committee. “This is a spectacular turnaround, and unlike previous periods of expansion, forex reserves have increased, and the current account balance has remained positive. In a tweet, Hammad Azhar, the energy minister, said, “Industry-led this rise.”
Pakistan has also unveiled eight projects that address sustainable development goals and have the potential to attract foreign direct investment. Infrastructure, hydropower, a medical device development center, silicon solar PV panel manufacture, agriculture drone and smart farm manufacturing, university technology parks, and IT incubation centers are among the initiatives in Pakistan. Government is hopeful that Investors will send money to Pakistan online to invest in the sectors mentioned above.