farhan_9909
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KARACHI: The foreign direct investment (FDI) has doubled during the first two months of the current fiscal year while the highest attraction for the FDI was still the oil and gas exploration.
The State Bank reported on Monday that the FDI rose to $105 million from $52m during the corresponding period of previous year, reflecting a growth of 101 per cent.
The volume of FDI does not represent a healthy situation, but the increase showed some confidence of investors despite high degree of terrorism in the country.
The inflows were not higher than the first two months of the previous year, but it was encouraging that the outflow was lower than previous year.
The details showed that inflows during the first two months were $203m compared to $285m during the same period of last year; However, the outflow in the two months of the current fiscal year was $98m. Last year the outflow was $233m.
The low outflow during the first two months was the first positive change for economy as no positive sign emerged in the first 100 days of the new elected government.
Analysts considered the loan agreement with IMF for $6.6bn as another debt for repayment of debt that could help the government remain a good client of the IMF but no positive impact was witnessed.
They said that even the local currency could not get strength out of these IMF inflows as it has been losing weight against the US dollar despite the loan deal.
Currency experts said on Monday that the dollar was traded just close to Rs105 in the inter-bank market while the open market was trading at Rs105.90.
Currency dealers said the only impact of the IMF deal was that fast devaluation of rupee slowed down.
The SBP reported that the portfolio investment fell by 49 per cent to $38m from $72m during the two months compared to the same period of previous year.
The oil and gas exploration attracted $60m during this period while it had received $35m last year. The sector showed the highest attraction for foreign investors.
Chemicals attracted $35m compared to just $10m last year. Food and beverages also attracted higher FDI ($14m) compared to last year ($5m).
However, it could be shocking news for Pakistanis that tobacco and cigarettes again became attractive for foreign investors as an inflow of $20m was noted during the first two months of the current fiscal year.
The previous year witnessed a net outflow of $1.6 million during the two months.
Pakistan is among the nations consuming highest number of cigarettes.
Like previous year, the telecommunications witnessed highest outflow of $60m. The inflow in this sector was lower than last year.
The last year’s outflow was $167m which eradicated the impact of $77m inflow.
FDI up 101pc in July-Aug - DAWN.COM
The State Bank reported on Monday that the FDI rose to $105 million from $52m during the corresponding period of previous year, reflecting a growth of 101 per cent.
The volume of FDI does not represent a healthy situation, but the increase showed some confidence of investors despite high degree of terrorism in the country.
The inflows were not higher than the first two months of the previous year, but it was encouraging that the outflow was lower than previous year.
The details showed that inflows during the first two months were $203m compared to $285m during the same period of last year; However, the outflow in the two months of the current fiscal year was $98m. Last year the outflow was $233m.
The low outflow during the first two months was the first positive change for economy as no positive sign emerged in the first 100 days of the new elected government.
Analysts considered the loan agreement with IMF for $6.6bn as another debt for repayment of debt that could help the government remain a good client of the IMF but no positive impact was witnessed.
They said that even the local currency could not get strength out of these IMF inflows as it has been losing weight against the US dollar despite the loan deal.
Currency experts said on Monday that the dollar was traded just close to Rs105 in the inter-bank market while the open market was trading at Rs105.90.
Currency dealers said the only impact of the IMF deal was that fast devaluation of rupee slowed down.
The SBP reported that the portfolio investment fell by 49 per cent to $38m from $72m during the two months compared to the same period of previous year.
The oil and gas exploration attracted $60m during this period while it had received $35m last year. The sector showed the highest attraction for foreign investors.
Chemicals attracted $35m compared to just $10m last year. Food and beverages also attracted higher FDI ($14m) compared to last year ($5m).
However, it could be shocking news for Pakistanis that tobacco and cigarettes again became attractive for foreign investors as an inflow of $20m was noted during the first two months of the current fiscal year.
The previous year witnessed a net outflow of $1.6 million during the two months.
Pakistan is among the nations consuming highest number of cigarettes.
Like previous year, the telecommunications witnessed highest outflow of $60m. The inflow in this sector was lower than last year.
The last year’s outflow was $167m which eradicated the impact of $77m inflow.
FDI up 101pc in July-Aug - DAWN.COM
