FDI in IT sector posts 120% growth in Jul-Oct 2011

[ameer219]

FDI in IT sector posts 120% growth in Jul-Oct 2011


KARACHI: Pakistan’s Information and Technology (IT) industry has gained limelight as foreign investors are seeking healthy opportunity to work with local software houses and service providers as shown by the substantial inflow of foreign investment in the country.

State Bank of Pakistan (SBP) statistics said the Foreign Direct Investment (FDI) in the IT sector witnessed growth of 120 percent, attracting capital of $ 9.4 million in the first fourth months of the current fiscal year 2011-12 compared with corresponding year of previous year. The FDI inflows were recorded in software development with $6.5 million, IT services with $ 1.8 million and hardware services with $ 1.1 million respectively.

Despite lots of challenges, local IT companies and foreign companies with their subsidiaries are tapping potential of local market in various fields including software programming, mobile applications, networking services and hardware production.

Industry people said that global companies are seeking joint ventures with local firms or planning to set up their outlets for exploiting talents of the local industry in different fields. Foreign companies having offices in Pakistan are trying to scale up their business with expansion of their networks and production volume, they said.

The recent achievements in the IT sectors, which include the regional recognition at APICTA Awards, Tenpearl and Pepper.pk, must have grabbed the attention of the world. Hence, the FDI witnessed handsome growth in the current fiscal year and a business volume has been increasing with number of employment in the IT sector.

According to Security Exchange Commission of Pakistan (SECP), there are 83 companies having comprehensive authorised and paid-up capital were listed in the four months (Jul-Oct) 2011 in Pakistan. staff report

Daily Times - Leading News Resource of Pakistan

 

[ramu]

Misleading header : Generally "posts x%" is used for return on investment or absolute profit and rarely used for growth in investment.

attracting capital of $ 9.4 million in the first fourth months of the current fiscal year 2011-12 compared with corresponding year of previous year. The FDI inflows were recorded in software development with $6.5 million, IT services with $ 1.8 million and hardware services with $ 1.1 million respectively.

Connected news on overall FDI in Pakistan

Steep fall in foreign investment

THE country witnessed a sharp fall of 61 per cent in the foreign private investment during the first four months of this fiscal year. According to the State Bank of Pakistan the foreign private investment fell to $239.4 million during July-October period of 2011-12 against $610 million inflows noted during the same period last year, a decline of 60.8 per cent. Similarly, the foreign direct investment (FDI) fell to just $340 million, a decline of 27.7 per cent while comparing with the same period of last year.

This should be a cause for concern for our policy makers and especially the economic managers as FDI has become a key in the growth of many developing countries like China, India, Brazil, Argentina, Indonesia and Thailand but Pakistan has been facing shrinking FDI inflows mainly due to security situation. The negligible investment it has attracted is also focused on sectors like oil exploration, telecommunication and energy. Apart from foreign investment, local investment too is shrinking and there are reports of even shifting of industries to countries like Bangladesh. No doubt, security and law and order situation are major hurdles in the way of investment as capital goes to only safer places but safety doesn’t mean physical security alone. In many countries, investors are offered lucrative incentives and all barriers in the way of investment are removed and one window operation is done to expedite the entire process of approval, supply of services and clearances of all sorts. Despite security concerns, investors from countries UAE, Saudi Arabia, China and Malaysia still prefer to invest in Pakistan but they are fully exploited by our bureaucratic system and ultimately they turn their faces to other directions. Similarly, embassies and especially commercial attaches of other countries remain in intensive interaction with the business community of the host countries with a view to attracting investment for their countries but ours are just enjoying R&R abroad. We have been hearing since long that performance of our missions abroad would be judged on the basis of their ability to find markets for Pakistani products and attract investments but the situation has not improved as yet. Again, political leadership has no time to concentrate on economy but economic managers whose whole time job is to look after the economy should demonstrate vision to make a difference.

Steep fall in foreign investment

 

[ameer219]

Misleading header : Generally "posts x%" is used for return on investment or absolute profit and rarely used for growth in investment.



Connected news on overall FDI in Pakistan

Steep fall in foreign investment

THE country witnessed a sharp fall of 61 per cent in the foreign private investment during the first four months of this fiscal year. According to the State Bank of Pakistan the foreign private investment fell to $239.4 million during July-October period of 2011-12 against $610 million inflows noted during the same period last year, a decline of 60.8 per cent. Similarly, the foreign direct investment (FDI) fell to just $340 million, a decline of 27.7 per cent while comparing with the same period of last year.

This should be a cause for concern for our policy makers and especially the economic managers as FDI has become a key in the growth of many developing countries like China, India, Brazil, Argentina, Indonesia and Thailand but Pakistan has been facing shrinking FDI inflows mainly due to security situation. The negligible investment it has attracted is also focused on sectors like oil exploration, telecommunication and energy. Apart from foreign investment, local investment too is shrinking and there are reports of even shifting of industries to countries like Bangladesh. No doubt, security and law and order situation are major hurdles in the way of investment as capital goes to only safer places but safety doesn’t mean physical security alone. In many countries, investors are offered lucrative incentives and all barriers in the way of investment are removed and one window operation is done to expedite the entire process of approval, supply of services and clearances of all sorts. Despite security concerns, investors from countries UAE, Saudi Arabia, China and Malaysia still prefer to invest in Pakistan but they are fully exploited by our bureaucratic system and ultimately they turn their faces to other directions. Similarly, embassies and especially commercial attaches of other countries remain in intensive interaction with the business community of the host countries with a view to attracting investment for their countries but ours are just enjoying R&R abroad. We have been hearing since long that performance of our missions abroad would be judged on the basis of their ability to find markets for Pakistani products and attract investments but the situation has not improved as yet. Again, political leadership has no time to concentrate on economy but economic managers whose whole time job is to look after the economy should demonstrate vision to make a difference.

Steep fall in foreign investment

Greetings Ramu,

I am well aware of the overall FDI investment in Pakistan, and I believe there is no such need to post this, as there is already a thread available to discuss on the overall FDI in Pakistan.

Misleading header : Generally "posts x%" is used for return on investment or absolute profit and rarely used for growth in investment.

Any source Ramu? Not that I am challenging this statement, but I just want to increase my understanding on it.

Regards
Ameer

 

[Karachiite]

Great news let the haters hate.