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Pakistan's Foreign investment shrinking
All major sectors having attraction for foreign investors lost their charm as either investment flew out or shrunk to the minimum level except the oil and gas exploration sector.
The telecommunications, which has been the centre of attraction for foreign investment for a decade, witnessed a steep fall as foreign investment reached just $378.7 million during year ending on June 30.
The State Bank reported that in the first eleven months the foreign investment in telecommunications declined by 48 per cent, while the communications witnessed a fall of 63 per cent. During the same period last year the telecommunications attracted $727 million.
Still attractive is the oil and gas exploration sector, which is the only sector where the investors poured almost the same amount of money. During this period the sector received an investment of $654 million compared to $658 million last year.
This was the highest amount of foreign investment in any sector. The total amount remained just about $2 billion during this period.
The picture emerging from the investment trend shows that the country has lost attraction even in the sectors having great potential to earn like power sector.
The power sector faced a net loss of 117 per cent and instead of inflows there was an outflow of $17 million. During this period of last year the power sector had received $100.7 million.
Food packaging, which received $102.4 million last year, attracted just $5.4 million this year. However, food sector received higher amount of $72 million compared to $46 million last year.
Another major center of attractions was financial business but it lost the ground and failed to attract foreign investment. The sector attracted $154 million compared to $689 million during the same period of last year.
It is a fall of 77.7 per cent.Though, the foreign investment trend changed globally due to financial crisis in the United States and Europe, while it engulfed entire developed world but developing countries like China and India succeeded to maintain their position and remained attractive for foreign investment.
Analysts believe the country has great potential for foreign investment but the war-like-situation in North of Pakistan, Afghanistan and series of suicide bombings in major cities, including the capital city, rocked the confidence of investors.
They said the country needs to promote its image by improving general law and order situation despite the continued war against terrorism.
The newly-born information technology, which started its journey with enthusiasm to compete with India, fell apart as it witnessed a net outflow of $82 million during this year, while last year it had attracted $62.5 million.
DAWN.COM | Business | Pakistan's Foreign investment shrinking
All major sectors having attraction for foreign investors lost their charm as either investment flew out or shrunk to the minimum level except the oil and gas exploration sector.
The telecommunications, which has been the centre of attraction for foreign investment for a decade, witnessed a steep fall as foreign investment reached just $378.7 million during year ending on June 30.
The State Bank reported that in the first eleven months the foreign investment in telecommunications declined by 48 per cent, while the communications witnessed a fall of 63 per cent. During the same period last year the telecommunications attracted $727 million.
Still attractive is the oil and gas exploration sector, which is the only sector where the investors poured almost the same amount of money. During this period the sector received an investment of $654 million compared to $658 million last year.
This was the highest amount of foreign investment in any sector. The total amount remained just about $2 billion during this period.
The picture emerging from the investment trend shows that the country has lost attraction even in the sectors having great potential to earn like power sector.
The power sector faced a net loss of 117 per cent and instead of inflows there was an outflow of $17 million. During this period of last year the power sector had received $100.7 million.
Food packaging, which received $102.4 million last year, attracted just $5.4 million this year. However, food sector received higher amount of $72 million compared to $46 million last year.
Another major center of attractions was financial business but it lost the ground and failed to attract foreign investment. The sector attracted $154 million compared to $689 million during the same period of last year.
It is a fall of 77.7 per cent.Though, the foreign investment trend changed globally due to financial crisis in the United States and Europe, while it engulfed entire developed world but developing countries like China and India succeeded to maintain their position and remained attractive for foreign investment.
Analysts believe the country has great potential for foreign investment but the war-like-situation in North of Pakistan, Afghanistan and series of suicide bombings in major cities, including the capital city, rocked the confidence of investors.
They said the country needs to promote its image by improving general law and order situation despite the continued war against terrorism.
The newly-born information technology, which started its journey with enthusiasm to compete with India, fell apart as it witnessed a net outflow of $82 million during this year, while last year it had attracted $62.5 million.
DAWN.COM | Business | Pakistan's Foreign investment shrinking
