FDI into Pakistani cement and construction falls

Pakistan has received a net total foreign direct investment (FDI) of US$1.34bn during first six months of July and December of FY19-20 compared to US$796.8m received in same months of the previous year. This represents an increase of 68 per cent YoY, mainly due to a high inflow from Norway, China, Japan, Malta, USA and other countries between July and December 2019, according to data of the State Bank of Pakistan.
 
However, this increasing trend of FDI was not reflected in the country's construction and cement sectors, which are still lagging behind other sectors.
 
Pakistan's cement and construction sectors have seen net foreign direct investment (FDI) drop 91 per cent to US$28.7m in 6MFY19-20 compared to US$312.1m in corresponding period last year. Of this total, the cement industry attracted an investment of US$19.4m and construction sector US$9.3m in 6MFY19-20, compared to US$24.3m and US$287.8m in same six months in the year-ago period. It represents a fall of 20.2 and 97 per cent in cement and construction sectors, respectively. In December 2019 alone both sectors attract a total FDI of US$5m.
 
Meanwhile, the Pakistani government is taking steps to attract foreign investors, aiming to receive a substantial inflow of FDI in the remaining months of the financial year on the back of improvements at the macroeconomic level.