Foreign investment in Pakistan plummets

[Sher Malang]

KARACHI: Foreign investment in Pakistan plummeted by 67% in the first quarter, according to official data, with experts blaming the fall on poor economic management, energy shortages and persistent terrorism.

The figures from the central State Bank of Pakistan showed net foreign direct investment (FDI) from July to September was just $87 million, compared with $263 million in the same period last year. Pakistan’s financial year begins on July 1.

The overall FDI inflow during the quarter was $287 million while the outflow was $200 million, with only the oil and gas exploration sector recording a positive net figure.

Even the normally popular telecommunications sector registered a net outflow of $100.9 million.

Analysts said FDI inflows have been falling for the last four years.

“Poor economic management and persistent militancy has forced investors away from a market which has huge potential and prospects,” said economist AB Shahid.

Earlier this month the International Monetary Fund (IMF) said Pakistan’s economic situation was worsening and the country faced a return to double-digit inflation as the government prints money to finance its deficit.

The IMF also predicted growth of just 3-3.5 percent and warned the country’s external accounts were deteriorating, with incoming investment slowing and the central bank’s reserves dropping.

“But the biggest of the negatives is the deteriorating law and order situation that seems unmanageable,” Shahid said.

Pakistan has repaid $1.3 billion of IMF loans in four instalments, including a $400 million chunk in August, and is due to pay a further $2.5 billion in the current fiscal year, which ends on June 30.

The central bank said Pakistan had foreign reserves of $14.4 billion dollars as of last week.

Source: Foreign investment in Pakistan plummets – The Express Tribune

 

[CZAR]

KARACHI: Foreign investment in Pakistan plummeted by 67% in the first quarter, according to official data, with experts blaming the fall on poor economic management, energy shortages and persistent terrorism.

The figures from the central State Bank of Pakistan showed net foreign direct investment (FDI) from July to September was just $87 million, compared with $263 million in the same period last year. Pakistan’s financial year begins on July 1.

The overall FDI inflow during the quarter was $287 million while the outflow was $200 million, with only the oil and gas exploration sector recording a positive net figure.

Even the normally popular telecommunications sector registered a net outflow of $100.9 million.

Analysts said FDI inflows have been falling for the last four years.

“Poor economic management and persistent militancy has forced investors away from a market which has huge potential and prospects,” said economist AB Shahid.

Earlier this month the International Monetary Fund (IMF) said Pakistan’s economic situation was worsening and the country faced a return to double-digit inflation as the government prints money to finance its deficit.

The IMF also predicted growth of just 3-3.5 percent and warned the country’s external accounts were deteriorating, with incoming investment slowing and the central bank’s reserves dropping.

“But the biggest of the negatives is the deteriorating law and order situation that seems unmanageable,” Shahid said.

Pakistan has repaid $1.3 billion of IMF loans in four instalments, including a $400 million chunk in August, and is due to pay a further $2.5 billion in the current fiscal year, which ends on June 30.

The central bank said Pakistan had foreign reserves of $14.4 billion dollars as of last week.

Source: Foreign investment in Pakistan plummets – The Express Tribune

This would have a crippling effect on the Current Account Deficit and consequently the currency.

How much gold does pak have? Pretty soon they will either be pledging it to the IMF or they will be playing the "Afghan-Terrorism" card to get more aid. Infact, didn't the US just sanction USD 2 billion in unconditional aid. What do you know - they are already at it...

 

[FaujHistorian]

KARACHI: Foreign investment in Pakistan plummeted by 67% in the first quarter, according to official data, with experts blaming the fall on poor economic management, energy shortages and persistent terrorism.

The figures from the central State Bank of Pakistan showed net foreign direct investment (FDI) from July to September was just $87 million, compared with $263 million in the same period last year. Pakistan’s financial year begins on July 1.

The overall FDI inflow during the quarter was $287 million while the outflow was $200 million, with only the oil and gas exploration sector recording a positive net figure.

Even the normally popular telecommunications sector registered a net outflow of $100.9 million.

Analysts said FDI inflows have been falling for the last four years.

“Poor economic management and persistent militancy has forced investors away from a market which has huge potential and prospects,” said economist AB Shahid.

Earlier this month the International Monetary Fund (IMF) said Pakistan’s economic situation was worsening and the country faced a return to double-digit inflation as the government prints money to finance its deficit.

The IMF also predicted growth of just 3-3.5 percent and warned the country’s external accounts were deteriorating, with incoming investment slowing and the central bank’s reserves dropping.

“But the biggest of the negatives is the deteriorating law and order situation that seems unmanageable,” Shahid said.

Pakistan has repaid $1.3 billion of IMF loans in four instalments, including a $400 million chunk in August, and is due to pay a further $2.5 billion in the current fiscal year, which ends on June 30.

The central bank said Pakistan had foreign reserves of $14.4 billion dollars as of last week.

Source: Foreign investment in Pakistan plummets – The Express Tribune

If we behave like Taliban, dress like taliban, then off course our country will be like Afghanistan. A land with so many possibilities, so many opportunities, and yet utterly destroyed due to infighting.

In Afghanistan Pashtuns kill Hazaras, Uzbeks kill Pashtuns, and everyone kills NATO troops. Welcome to the land of killing fields.

In Pakistan Mohajirs kill Sindhis, Balochis kill Punjabis, Sunnis kill Shias and Ahmadis, and Talbian kill everyone.


In Pakistan, our founder Jinnah wore 3 piece suits, told us to be desciplined as a nation, be united and have faith in Pakistan.

But we started wearing tribal clothing since 1970s as Talibanic national dress, and in no time we were no longer desciplined, we are as united as Afghanis and Somalis and Yemenis, and we have faith in Islam but no faith in Pakistan.

Thus we are now a poverty stricken country fast becoming another Afghanistan.

And

Who in his right mind would ever invest their hard earned money in Afghaistan, Pakistan, Somalia, Yemen etc.

Who?


I have no hope in the short run. We want to be pakkah Muslims,

And

Muslim state without petroleum will always be a wretched state like Somalia, Yemen, Afghanistan, Egypt, etc.



or perhaps it is karmic justice. We destabilized our neighbor Afghanistan, and as a result now Karma is serving us our own medicine.

Who knows?




peace

 

[Sher Malang]

If we behave like Taliban, dress like taliban, then off course our country will be like Afghanistan. A land with so many possibilities, so many opportunities, and yet utterly destroyed due to infighting.

In Afghanistan Pashtuns kill Hazaras, Uzbeks kill Pashtuns, and everyone kills NATO troops. Welcome to the land of killing fields.

In Pakistan Mohajirs kill Sindhis, Balochis kill Punjabis, Sunnis kill Shias and Ahmadis, and Talbian kill everyone.


In Pakistan, our founder Jinnah wore 3 piece suits, told us to be desciplined as a nation, be united and have faith in Pakistan.

But we started wearing tribal clothing since 1970s as Talibanic national dress, and in no time we were no longer desciplined, we are as united as Afghanis and Somalis and Yemenis, and we had faith in Islam and no faith in Pakistan.

Thus we are now a poverty stricken country fast become another Afghanistan.

And

Who in his right mind would ever invest their hard earned money in Afghaistan, Pakistan, Somalia, Yemen etc.

Who?


I have no hope in the short run. We want to be pakkah Muslims,

And

Muslim state without petroleum will always be a wretched state like Somalia, Yemen, Afghanistan, Egypt, etc.



or perhaps it is karmic justice. We destabilized our neighbor Afghanistan, and as a result now Karma is serving us our own medicine.

Who knows?




peace

Well, you are right but what is the way out?

 

[Sher Malang]

This would have a crippling effect on the Current Account Deficit and consequently the currency.

How much gold does pak have? Pretty soon they will either be pledging it to the IMF or they will be playing the "Afghan-Terrorism" card to get more aid. Infact, didn't the US just sanction USD 2 billion in unconditional aid. What do you know - they are already at it...

64 tonnes that will also not help them, they need to put right things into right path otherwise we will be seeing a total collapse in any predicted sanctions on them. Afghan terrorism has cost them a lot even more than Afghans.

 

[anilindia]

If we behave like Taliban, dress like taliban, then off course our country will be like Afghanistan. A land with so many possibilities, so many opportunities, and yet utterly destroyed due to infighting.

In Afghanistan Pashtuns kill Hazaras, Uzbeks kill Pashtuns, and everyone kills NATO troops. Welcome to the land of killing fields.

In Pakistan Mohajirs kill Sindhis, Balochis kill Punjabis, Sunnis kill Shias and Ahmadis, and Talbian kill everyone.


In Pakistan, our founder Jinnah wore 3 piece suits, told us to be desciplined as a nation, be united and have faith in Pakistan.

But we started wearing tribal clothing since 1970s as Talibanic national dress, and in no time we were no longer desciplined, we are as united as Afghanis and Somalis and Yemenis, and we have faith in Islam but no faith in Pakistan.

Thus we are now a poverty stricken country fast becoming another Afghanistan.

And

Who in his right mind would ever invest their hard earned money in Afghaistan, Pakistan, Somalia, Yemen etc.

Who?


I have no hope in the short run. We want to be pakkah Muslims,

And

Muslim state without petroleum will always be a wretched state like Somalia, Yemen, Afghanistan, Egypt, etc.



or perhaps it is karmic justice. We destabilized our neighbor Afghanistan, and as a result now Karma is serving us our own medicine.

Who knows?




peace

what are you trying to say friend.. are u ok......

 

[FaujHistorian]

Well, you are right but what is the way out?

Our way "IN" to something, or "OUT" of anything will be determined by our intellectual class. Where is that intellectual class?

It comes from three centers.

1. My city Karachi's Urdu speaking intellectuals
2. Lahore/Pindi's Punjabi intellectuals
3. Peshawar/Charsadda's Pashtun intellecuals


The day these 3 groups decide to leave the tribal culture, no "loathe" tribalism, leave Islamo-socialism, and start believing in Pakistan, things will start improving.

However at this stage, #1 is stuck with Mohajrism, #2 is utterly a utterly confused in Islamic la la land like a cow lost in the woods, and my goodness what the Pasthun intellectuals are suffering will only be known to those who have a heart to sense and eyes to see. Just imagine the torment suffered by pashtuns just with a single case like that of brave girl Malala. Just single case. It is like dying from 1000s of cuts 1000s upon 1000s of little cuts.

And thus we are lost, and we'll be lost until these three centers wake up to the realities of this world. But I have little hope.


peace

 

[pak-marine]

en route becoming another afghanistan

 

[Gin ka Pakistan]

First : No new investor wants to come to Karachi and get ransom notes , get their factory burned if not paid. Thanks God there was Faisalabad for Punjabi textile owners who left Karachi in 90s.

Second: with war in north west and WOT who wants to invest in Pakistan ?

Third: Corruption is so high that cost of doing business is so too much in Pakistan ask HubCo power.

Forth: The economy is running on borrowing and printing currency

Fifth: Economy is so weak that Pakistan army can't even take three month war with extremists without US help (then it becomes US war).

Sixth: no power to run the business , so who wants to invest

 

[Thəorətic Muslim]

Pakistan right now is too unstable.

1. Supreme Court bringing corrupt politicians to their knees
2. Malala
3. WoT
4. Load Shedding (btw its happening here in Istanbul also)
5. Just look at Economic development models:
No stability = no development
Corruption = less development
No rule of Law= ... you get the picture?

Where are the Economist here?

 

[karan21]

Pakistan right now is too unstable.

1. Supreme Court bringing corrupt politicians to their knees
2. Malala
3. WoT
4. Load Shedding (btw its happening here in Istanbul also)
5. Just look at Economic development models:
No stability = no development
Corruption = less development
No rule of Law= ... you get the picture?

Where are the Economist here?

Dont worry be happy. yyar sab theek ho jaye ga. Bad tum tenision mat lena.