China has overtaken the US in investment in Pakistan, leading to a 22.6% increase in FDI overall. Natasha Turak reports.

FDI into Pakistan from July 2016 to May 2017 was worth $2.1bn, the country's state bank has announced. This represents a significant 22.6% increase on the previous year’s $1.903bn. The figure was below $1bn in 2014-15, reports the Pakistani daily Dawn

The growth is credited to Chinese investment as part of its One Belt, One Road initiative, which has allocated more than $900bn for the numerous countries included in the project. Chinese FDI into Pakistan between July 2016 and last May rose to $879m, according to the State Bank of Pakistan, accounting for 43% of the total foreign investment recorded over the 11-month period. In April of 2017, China’s FDI into Pakistan surpassed that of the US.

Part of the One Belt, One Road initiative is the China-Pakistan Economic Corridor, which has led to particularly strong interest in Pakistan’s power and transport infrastructure, areas still in need of billions in investment to provide adequate electricity and transport capability for the country’s 193 million people.   

This article is sourced from fDi Magazine
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