Net inflows of foreign direct investment (FDI) into Pakistan averaged about $2.3 billion in the last four years and in the eleven months of the outgoing 2020-21, it slipped below $1.8bn. Even at the $2.3bn level, our yearly FDI inflow is less than half of our monthly merchandise import bill.
Clearly, much thicker inflows of FDI are required to help ease the balance of payments problems.
But the problem is, Pakistan makes little effort to attract more FDI and relies on foreign funding from friendly nations or commercial borrowing from foreign banks in addition to seeking International Monetary Fund (IMF) loans.
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