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KARACHI: Pakistan received foreign direct investment (FDI) of $330.7 million in the period July-November, which is 4.7% higher than $315.8 million it attracted in the corresponding five-month period in the last fiscal year.
However, FDI dropped 26% year-on-year to $47.1 million in November, according to data released by the State Bank of Pakistan. In the fiscal year 2012-13, Pakistan had received FDI worth over $1.4 billion.
The oil and gas sector attracted the highest amount of FDI in the July-November period. It attracted a net foreign investment of $179.5 million, which is 15.8% higher than the investment of $155 million it received in the corresponding five-month period in the previous fiscal year.
Improved net FDI in financial business ($64.2 million), chemicals ($61.7 million), tobacco and cigarettes ($45.2 million), food ($35.4 million) and automobile ($12.3 million) sectors led to the overall growth in FDI in the country during the five-month period, SBP data showed.
In contrast, a major dip in FDI was registered in the telecommunications sector, where a net outflow of $110.6 million was recorded in the period under review. Another sector that witnessed a considerable net outflow of FDI in July-November was electrical machinery ($11.1 million).
As for the foreign portfolio investment (FPI), which includes foreign public investment, Pakistan attracted only $68.2 million during the July-November period as opposed to $140.3 million in the corresponding period last year. This reflects a year-on-year decline of 51.3% in FPI.
Last week, SBP-held foreign exchange reserves declined to their 12-year low of $2.9 billion. According to analysts, one of the reasons behind the gradual downfall of foreign exchange reserves is unimpressive inflows of foreign investment.
Although FDI has witnessed an increase in recent months, its growth is less than satisfactory given the much-publicised efforts by the government to revive the economy.
Money inflow: FDI increases during July-November – The Express Tribune
However, FDI dropped 26% year-on-year to $47.1 million in November, according to data released by the State Bank of Pakistan. In the fiscal year 2012-13, Pakistan had received FDI worth over $1.4 billion.
The oil and gas sector attracted the highest amount of FDI in the July-November period. It attracted a net foreign investment of $179.5 million, which is 15.8% higher than the investment of $155 million it received in the corresponding five-month period in the previous fiscal year.
Improved net FDI in financial business ($64.2 million), chemicals ($61.7 million), tobacco and cigarettes ($45.2 million), food ($35.4 million) and automobile ($12.3 million) sectors led to the overall growth in FDI in the country during the five-month period, SBP data showed.
In contrast, a major dip in FDI was registered in the telecommunications sector, where a net outflow of $110.6 million was recorded in the period under review. Another sector that witnessed a considerable net outflow of FDI in July-November was electrical machinery ($11.1 million).
As for the foreign portfolio investment (FPI), which includes foreign public investment, Pakistan attracted only $68.2 million during the July-November period as opposed to $140.3 million in the corresponding period last year. This reflects a year-on-year decline of 51.3% in FPI.
Last week, SBP-held foreign exchange reserves declined to their 12-year low of $2.9 billion. According to analysts, one of the reasons behind the gradual downfall of foreign exchange reserves is unimpressive inflows of foreign investment.
Although FDI has witnessed an increase in recent months, its growth is less than satisfactory given the much-publicised efforts by the government to revive the economy.
Money inflow: FDI increases during July-November – The Express Tribune
