There is a lot of buzz about FDI in Pakistan regarding the investment and CPEC projects that are underway in Pakistan, but Pakistan is nowhere near the global FDI trends in 2018.
The Foreign Direct Investment (FDI) plays a critical role in pushing up country’s economy, countries that lead the world economy or play a major part in it are always been successful in attracting FDI to their country.
According to the report prepared by FDI Intelligence, the greenfield capital investment has decreased globally by 15.2% to $662.6 billion while the number of FDI projects also decreased by 1.1 percent to 13,200.
In 2018 US is the top country to attract FDI recording $87.4 billion. Eastern Europe which is relatively less developed than Western Europe has increased it FDI by 4% as per the number of projects and 13% by capital invested.
The UK has seen a severe decline during 2018, the number of projects was decreased by 10%, the capital investment also decreased by 5% and the total number of jobs created fell by 11%. This majorly happened due to the ongoing transition period of Brexit, as different large organizations are mulling to pull their investment plans from the UK if there is hard Brexit ahead in March.
China is the top country in the Asia-Pacific region to attract FDI, it regains its position by claiming 26% of capital investment in the region. Poland has witnessed the top country in Eastern Europe to attack FDI by increasing 25% of FDI projects and 49% increase in capital investment.
India is one of the major countries to attract FDI in Asian region, the total global net FDI inflow was recorded $1.863 trillion in 2017 according to world bank, Pakistan has only attracted $2767.6 million of net FDI into the country according to Board of Investment, which is only a 1.5 percent of Global Net FDI inflow.