Fahad Khan 2
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FDI slumps by 13pc in 10 months
KARACHI: Foreign direct investment (FDI) in the country declined by 13 percent in the first 10 months of the current fiscal year, figures issued by the State Bank of Pakistan (SBP) showed on Thursday.
FDI flows to Pakistan fell to $750.9 million during July-April FY14 as compared to $862.3 million in the corresponding period of the last fiscal year.
FDI in April was also bleak as Pakistan received just $81.1 million against $231.3 million in the same month last fiscal year, the central bank data showed.
Several analysts were unsurprised by the foreign investment data, as they believe that global investors seem to have a bit step backed from investing in Pakistan due to worst security conditions and other structural issues such as frequent power outages.
They also express the hope that foreign investment declined but it is a temporarily phenomenon and the prospect of the foreign investment will brighten again.
The SBP’s data reveals that the traditional sectors, such as financial businesses, telecommunications and oil and energy sectors, which have had attracted the major chunk of the FDI, are now facing decline in investment or taking out money from the country.
According to the SBP data, Pakistan pulled in $1.60 billion from foreign investors in different sectors of the economy during July-April FY14 against $1.90 billion last fiscal year. However, the foreign companies took $853.1 million out of the country during the period under review as compared to $1 billion last fiscal year.
The oil and gas exploration sector emerged as the biggest recipient of FDI with $394 million; followed by financial sector with $130.8 million in the July-April FY14. During the same period last fiscal year, the oil and gas exploration and the financial sectors attracted $467.1 million and $248.6 million in foreign direct investment.
Foreign investment in food sector increased to $82.3 million against $45.2 million in the previous year, the SBP data revealed. Foreign companies invested $40.5 million in tobacco and cigarette companies, it showed.
Pakistan has seen a modest decline of 15 percent in foreign investment during July-April FY14. Foreign investment flows to the country stood at $919.1 million from $1 billion.
However, total investments by foreign businesses significantly rose by 133.3 percent to $2.979 6 billion from $1.277 billion a year ago.
Similarly, investment portfolios at the local equity market fell by 23.4 percent to $168.2 million as compared to $219.4 million recorded in the last fiscal year
http://www.thenews.com.pk/Todays-New...c-in-10-months
10MFY14: Govt likely to miss export target, PBS data shows
For the current fiscal year, the government has targeted to increase exports to $26.6 billion, the target is expected to be missed by a margin of at least $1.5 billion. PHOTO: KPT
ISLAMABAD: The government is likely to miss this year’s export target as the country’s total exports in the first 10 months of this fiscal year grew just by 4.3% to about $21 billion, falling short of official and International Monetary Fund’s (IMF) projections.
The figures released by the Pakistan Bureau of Statistics (PBS) on Friday showed that the total exports during the July-April period stood at $20.99 billion – higher by a mere $854 million or 4.3% over the comparative period of the previous year.
For the current fiscal year, the government has targeted to increase exports to $26.6 billion, the target is expected to be missed by a margin of at least $1.5 billion. On an average, Pakistan is earning $2.1 billion a month by exporting goods.
After missing this year’s economic growth target, this will be the second most important economic indicator that is likely to remain below official estimates.
The imports also grew slower than official and IMF’s estimates, clocking in at $37.1 billion — a 1.2% growth or up by $440 million. It helped curtail the trade deficit to $16.1 billion in the first 10 months, according to the PBS. The 10-month deficit was 2.5% less than the one posted in the corresponding period of the previous year.
However, the $16.1-billion deficit was close to an annual trade deficit of a projection of $16.7 billion. An excessive trade deficit will eat up the official foreign currency reserves that have started building up on the back of foreign borrowings.
The Federal Board of Revenue (FBR) is also feeling the heat of slowing imports, as FBR Chairman Tariq Bajwa claimed that due to appreciation of rupee and decline in dutiable imports, the FBR’s revenues will be hurt by Rs70 billion.
The IMF has worked out this year’s financial requirements for Pakistan on the basis of a smaller trade deficit. The Fund has estimated a $16.5-billion trade deficit for the current fiscal year and projected $26.9 billion in exports and $43.6-billion in imports.
On the basis of these estimates, the IMF had assessed Pakistan’s external financing requirements at $7.7 billion, while asking the government to raise its official foreign exchange reserves to $9.4 billion.
On a month-on-month basis, the exports drastically shrunk by 14.5% to just $1.9 billion in April over March. Exports in April were $324 million less than March’s export bill. Contrary to contraction in exports, the imports in April grew 12% to $4.1 billion, resulting in a trade deficit of $2.2 billion. The monthly trade deficit was 54.7% higher than the one posted in March.
On a yearly basis, the trade deficit recorded at $2.2 billion in April over a year ago. It was higher by 20.8% or $370 million over the same month of the last year, said the PBS.
10MFY14: Govt likely to miss export target, PBS data shows – The Express Tribune
KARACHI: Foreign direct investment (FDI) in the country declined by 13 percent in the first 10 months of the current fiscal year, figures issued by the State Bank of Pakistan (SBP) showed on Thursday.
FDI flows to Pakistan fell to $750.9 million during July-April FY14 as compared to $862.3 million in the corresponding period of the last fiscal year.
FDI in April was also bleak as Pakistan received just $81.1 million against $231.3 million in the same month last fiscal year, the central bank data showed.
Several analysts were unsurprised by the foreign investment data, as they believe that global investors seem to have a bit step backed from investing in Pakistan due to worst security conditions and other structural issues such as frequent power outages.
They also express the hope that foreign investment declined but it is a temporarily phenomenon and the prospect of the foreign investment will brighten again.
The SBP’s data reveals that the traditional sectors, such as financial businesses, telecommunications and oil and energy sectors, which have had attracted the major chunk of the FDI, are now facing decline in investment or taking out money from the country.
According to the SBP data, Pakistan pulled in $1.60 billion from foreign investors in different sectors of the economy during July-April FY14 against $1.90 billion last fiscal year. However, the foreign companies took $853.1 million out of the country during the period under review as compared to $1 billion last fiscal year.
The oil and gas exploration sector emerged as the biggest recipient of FDI with $394 million; followed by financial sector with $130.8 million in the July-April FY14. During the same period last fiscal year, the oil and gas exploration and the financial sectors attracted $467.1 million and $248.6 million in foreign direct investment.
Foreign investment in food sector increased to $82.3 million against $45.2 million in the previous year, the SBP data revealed. Foreign companies invested $40.5 million in tobacco and cigarette companies, it showed.
Pakistan has seen a modest decline of 15 percent in foreign investment during July-April FY14. Foreign investment flows to the country stood at $919.1 million from $1 billion.
However, total investments by foreign businesses significantly rose by 133.3 percent to $2.979 6 billion from $1.277 billion a year ago.
Similarly, investment portfolios at the local equity market fell by 23.4 percent to $168.2 million as compared to $219.4 million recorded in the last fiscal year
http://www.thenews.com.pk/Todays-New...c-in-10-months
10MFY14: Govt likely to miss export target, PBS data shows
For the current fiscal year, the government has targeted to increase exports to $26.6 billion, the target is expected to be missed by a margin of at least $1.5 billion. PHOTO: KPT
ISLAMABAD: The government is likely to miss this year’s export target as the country’s total exports in the first 10 months of this fiscal year grew just by 4.3% to about $21 billion, falling short of official and International Monetary Fund’s (IMF) projections.
The figures released by the Pakistan Bureau of Statistics (PBS) on Friday showed that the total exports during the July-April period stood at $20.99 billion – higher by a mere $854 million or 4.3% over the comparative period of the previous year.
For the current fiscal year, the government has targeted to increase exports to $26.6 billion, the target is expected to be missed by a margin of at least $1.5 billion. On an average, Pakistan is earning $2.1 billion a month by exporting goods.
After missing this year’s economic growth target, this will be the second most important economic indicator that is likely to remain below official estimates.
The imports also grew slower than official and IMF’s estimates, clocking in at $37.1 billion — a 1.2% growth or up by $440 million. It helped curtail the trade deficit to $16.1 billion in the first 10 months, according to the PBS. The 10-month deficit was 2.5% less than the one posted in the corresponding period of the previous year.
However, the $16.1-billion deficit was close to an annual trade deficit of a projection of $16.7 billion. An excessive trade deficit will eat up the official foreign currency reserves that have started building up on the back of foreign borrowings.
The Federal Board of Revenue (FBR) is also feeling the heat of slowing imports, as FBR Chairman Tariq Bajwa claimed that due to appreciation of rupee and decline in dutiable imports, the FBR’s revenues will be hurt by Rs70 billion.
The IMF has worked out this year’s financial requirements for Pakistan on the basis of a smaller trade deficit. The Fund has estimated a $16.5-billion trade deficit for the current fiscal year and projected $26.9 billion in exports and $43.6-billion in imports.
On the basis of these estimates, the IMF had assessed Pakistan’s external financing requirements at $7.7 billion, while asking the government to raise its official foreign exchange reserves to $9.4 billion.
On a month-on-month basis, the exports drastically shrunk by 14.5% to just $1.9 billion in April over March. Exports in April were $324 million less than March’s export bill. Contrary to contraction in exports, the imports in April grew 12% to $4.1 billion, resulting in a trade deficit of $2.2 billion. The monthly trade deficit was 54.7% higher than the one posted in March.
On a yearly basis, the trade deficit recorded at $2.2 billion in April over a year ago. It was higher by 20.8% or $370 million over the same month of the last year, said the PBS.
10MFY14: Govt likely to miss export target, PBS data shows – The Express Tribune
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