FDI surges to $404.1m in power sector in Jul-Jan FY20.

ISLAMABAD -- Pakistan has witnessed a sizeable growth in fresh foreign direct investment (FDI) in projects related to power production in recent months.

The inflow of FDI surged to $404.1 million in first seven months of the current fiscal year (July 2019-Jan 2020), whereas, during the same period last year negative growth was witnessed, according to the data issued by the Board of Investment and the State Bank of Pakistan.

The estimates state that the FDI in the thermal power generation sector stood at $61.8 million during the said period. Moreover, $109.1 million worth of FDI was recorded in the hydroelectricity generation sector.

Similarly, the FDI in coal-fired power projects was recorded at $233.2 million. In January 2020, the amount of FDI in the power generation sector was $114.5 million.

An FDI is an investment made by a firm or individual in one country into business interests located in another country.

Last month it was reported that the growth in investment, however, remained low compared to the existing potential as investors anxiously wait for consistency in economic policies before initiating new projects in the country.

Business experts have been...