ANI
26 May 2022, 15:25 GMT+10
Islamabad [Pakistan], May 26 (ANI): Pakistan is now perceived by the International investors as a country with high default risk at a time when the foreign exchange reserves by the State Bank of Pakistan (SBP) are down from USD 20 billion in August 2021 to USD 10.1 billion in nine months.
The upsurge in Pakistan's default risk (which means that it is unable to pay its debt) is also marred by the country's bad politics.
The surge in default risk damages a country's reputation with international investors. Moreover, it makes it prohibitively expensive to borrow and it wrecks confidence in the country's currency, reported The News International.
The same scenario prevails in the island nation of Sri Lanka where on May 18, the nation was unable to pay USD 78 million in debt interest payments and went into default for the first time in Sri Lanka's history.
Meanwhile, the year-on-year Foreign Direct Investment data draws a sharp contrast between India's highest ever FDI of USD 83.57 billion for the current year with Pakistan's 2022 flat foreign investment inflows.
The FDI situation in Pakistan is a sob story. Though Pakistan has recorded month-on-month growth of over 660 per cent in April 2022, year-on-year growth reveals the country's sorry state of affairs.A look at year-on-year numbers reveals that foreign direct investment in April 2022 increased marginally by only 0.9 per cent versus April 2021 and overall, the FDI in the first ten months of the Fiscal Year 2022 reduced by 1.6 per cent year-on-year, reported Business Recorder.Apart from the net FDI in April 2022 flat growth over the previous year with a small base, the inflows in April were also down by 21.6 per cent and outflows down by 89.6 per cent year-on-year.
This suggests that the total inflows coming in April 2022 were also down which is definitely not a good sign for FDI in Pakistan.The same is also visible in the overall FDI in FY22 so far. During the first ten months of Fiscal Year 2022, inflows of foreign investment were down by 16.2 per cent, while outflows were down by 35.81 per cent, year-on-year.The overall picture of the foreign investment in the country has not changed much over a long time, especially since inflows from China started declining after key CPEC projects were over.Also, the lack of diversification and failure to increase export-oriented FDI are other factors pulling down FDI in Pakistan, as per the media portal.Additionally, there has been a decline in annual FDI flows, but FDI stocks are also decreasing where ease of doing business and taxation policy also creates a hindrance, as per the media portal. (ANI)Get a daily dose of Madagascar Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Madagascar Sun.
More InformationNew Delhi [India], March 1 (ANI): Afghanistan's steady rise in international cricket has caught the attention of cricketing greats,...
New Delhi [India], March 1 (ANI): Prime Minister Narendra Modi on Saturday highlighted India's capability to efficiently organize large-scale...
BEIJING, March 1 (Xinhua) -- A selection of the best press photos from Xinhua. A drone photo taken on Feb. 27, 2025 shows the construction...
(250301) -- JUBA, March 1, 2025 (Xinhua) -- A nurse from the International Committee of the Red Cross (ICRC) South Sudan delegation...
New Delhi [India], March 1 (ANI): The Indian Coast Guard Ship Sachet departed for Sudan on Friday, carrying over two tons of life-saving...
ABUJA, NIGERIA — For longtime automotive importer David Tope, Nigeria's auto market has become increasingly difficult. He used to...
MEXICO CITY, Mexico: Three American women were found dead over the weekend at a beach resort in Belize, police said. Officials are...
BANGKOK, Thailand: Chinese authorities said they started live-fire military exercises in the Gulf of Tonkin this week, just days after...
ABOARD THE CHARLES DE GAULLE, Philippines: France's nuclear-powered aircraft carrier and its warships arrived in the Philippines over...
FRESNO, California: Fresno State suspended two of its top men's basketball players last weekend and removed a third player from the...
WARSAW, Poland: Deputy Prime Minister Krzysztof Gawkowski confirmed over the weekend that Poland has been covering the cost of Ukraine's...
Israel sustained the West's support for its slaughter in Gaza for 15 months only through an intensive campaign of lies. It invented...