Due to the high demand for electricity across the country, various power-producing projects are under development, attracting a handsome inflow of nearly $900 million in the eleven-month of the financial year 2019-20.
According to the data released by State Bank of Pakistan (SBP), out of $2.4 billion investment inflows recorded from July to May, the power sector received the highest share from various countries including China.
Coal-based power plants attracted inflows of $573 million during the period, followed by thermal-run power producing projects with $182 million and hydel based power plants with $142 million.
The Telecom sector received an investment of $679 million during the period of July to May of the current financial year. In May, the sector recorded the highest inflows of $79 million in a single month due to the increasing demand for mobile broadband countrywide which will likely meet the growing demand for internet service during the prevailing pandemic.
Oil and Gas exploration and production sectors also received inflows of $279 million FDI whereas inflows of $153 have been recorded under the head of electrical machinery.
Among the countries, China was the biggest investor with an FDI inflow of $980 million registered in the said month. It is followed by Norway with $376 million and Malta with $203 million during the said period.
The foreign portfolio investment under debt securities recorded an outflow of $289 million so far the financial year. Hence, the total inflows of investment including $2.4 billion inflows and $289 million outflows translate into an amount of $1.87 billion in the capital account of the country.
The FDI in various sectors recorded a 90 percent growth.
The incumbent government has devised a target to investment handsome inflows in the country by next year. In this regard, it announced to promote a housing scheme that will stir up activity for the ailing economy.