Foreign direct investment outflow hits six-year peak on instability

The net outflow of foreign direct investment (FDI) hit a six-year high at $173 million in January reflecting the uncertain political situation in Pakistan. The State Bank’s latest data on Monday showed that January noted a net outflow of $173.2m against a net inflow of $237m in the same month of 2023. Since the caretaker government took charge in August 2023, the uncertainty over the political scenario has deepened. At the beginning of the new calendar year 2024, January witnessed the peak of political campaigning. It created doubts about the economic as well as political future of the country. The latest data clearly explains the thinking of foreign investors. Analysts said this huge net outflow in January was noted after 2018. The year 2018 was also the year of uncertainty, they said.