FDI surges by 75.5% to $816.9m in 9 months of FY13
By Arshad Hussain
KARACHI: The country’s net foreign direct investment (FDI) surged 75.5 percent to $816.9 million in nine months of the current fiscal year 2012-13 as compared to $465.5 million received in the same period last fiscal year, the data released by State Bank of Pakistan (SBP) said here on Tuesday.
The country received foreign investment of $621.9 million in July to March 2012-13, while the country’s bourses fetched an amount of $198.7 million, the SBP data said. Between last July and March, there was an inflow of $1.591 billion and an outflow was $969.1 million, the SBP data said.
During March, net FDI increased to $146.2 million from $57.2 million a year earlier in the same month.
Earlier this month, Asian Development Bank Country Director Werner Liepach said Pakistan has reached a critical balance of payments situation and will need another package from the International Monetary Fund before the end of the year to avert a crisis.
The foreign portfolio investment (FPI) witnessed growth by 339 percent in the nine months of current financial year to $198.7 million, the data said. The investment climate in Pakistani stock markets seems to be good as foreign investors are coming for investment in the bourses as the Karachi Stock Exchange had touched an all-time high several times in this month.
The sector recorded inflows of FDI including exploration and production sector with $426 million, financial services with $225.8 million, transport with $56.8 million, food with $41.8 million and construction with $27.4 million, SBP provincial figures said.
The major FDI landed from countries naming USA with $311.5 million, Italy with $164.9 million, Hong Kong with $229.7 million, UK with $101 million, Philippine with $76.8 million and Switzerland with $112.4 million.
The market analysts attributed this growth in net investment to the handsome inflows of FPI in the equity market, which witnessed boom in terms of shares trading and foreign investment.
They added overall FDI slightly improved on the arrival of general election as the new investors are looking forward positively for better investment environment in the future.
Pakistan’s inflation in February rose to 7.4 percent, the Pakistan Bureau of Statistics said.
On a monthly basis, the consumer price index fell 0.3 percent from January. Average inflation rate July to February fiscal year 2012-13 was 8.16 percent.
The Wholesale Price Index (WPI) and Sensitive Prices Index (SPI) in February 2013 increased by 0.34 percent and 0.07 percent, respectively as compared to the previous month.
Overseas Pakistani workers remitted an amount of $10.353 billion in the first nine months (July to March) of the current fiscal year 2012-13, showing a growth of 6.35 percent or $617.95 million when compared with $9.735.97 billion received during the same period of last fiscal year (July to March FY12).
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