As FDI declines 26 percent in the first two months of FY23, Pakistan's economic problems persist.

Nearly two-thirds of the country's total foreign direct investment (FDI) fell in the first two months of the current fiscal year (FY23) China is the second-largest investor in Pakistan, followed by the UAE .

Islamabad, Pakistan (Pakistan), September 24, : Nearly two-thirds of the country's total foreign direct investment (FDI) fell in the first two months of the current fiscal year (FY23), measuring just USD 169.5 million, according to media reports, citing data from the State Bank of Pakistan (SBP), which comes at a time when the country is facing a deepening crisis and is making attempts to boost foreign exchange reserves by non-debt- According to the Business Recorder, Chinese investments have also remained elusive.In comparison to this year, FDI was higher last year than this year.During the same period, ie.in 1998, a flood occurred.

According to the SBP figures, FDI flows pumped in at USD 247.8 million during the July-August FY23 period, compared to an outflow of USD 78.2 million, according to the media outlet.Net FDI was down by USD 110.7 million in August alone, down 12 percent from the same month the year before.The FDI results also highlight the slowing Chinese investments in Pakistan.Overall Chinese investment in the region decreased by 31 percent in the two months of FY23, with China accounting for 19.4 percent of the total investment with a net FDI of USD 32.7 million, relative to USD 47.5 million during the same period last year, according to Business Recorder.

UAE has emerged as the second-largest investor with a net FDI of USD 25 million, up from 141 pc in the same period last year, accounting for 15 pc of the total investment, followed by the financial services sector (USD 51 million) and communications (USD 25 million).