Total foreigninvestment up by 50%
Wednesday, June 20, 2007
KARACHI: Total foreign investment in the country surged by 50.4 percent to $6.282 billion in July-May (2006-07) compared to $4.177 billion received in the same period last year.
Data of the State Bank of Pakistan (SBP) shows that foreign private investment rose by 58.8 percent to $5.627 billion in the first eleven months of the current financial year from $3.543 billion last year.
Of this amount, foreign direct investment stood at $4.52 billion, which was up by 40 percent from last years $3.23 billion. This included $133.2 million as privatisation proceeds in the telecommunication sector. During the same period portfolio investment stood at $1.107 billion, higher by 253.3 percent than 313.4 million received last year.
On the other hand, foreign public investment recorded a small growth of 3.2 percent, rising to $654.5 million this year from $634 million last year. All of this was portfolio investment.
In the last fiscal year, the country had received total foreign investment of $3.872 billion.
The largest chunk of the foreign investment came to the telecommunications sector, as it attracted $1.482 billion during the first eleven months. Financial business sector attracted $896.7 million, as investment is coming in from around the world in the booming financial sector of the country.
Tobacco and cigarette sector attracted $388.5 million, as Philip Morris International Inc. (PMI) acquired Lakson Tobacco Company of Pakistan. The oil and gas exploration sector brought in $479.6 million. The country has been consistently attracting foreign investment in this sector, as the government strives to reduce its dependence on oil imports.
Petroleum refining, beverages, power, construction and trade sectors attracted $133.4 million, $88.7 million, $167.7 million, $146.1 million, and $146 million, respectively.
The government plans to float GDRs of its shareholdings in National Bank of Pakistan, Habib Bank Limited and Allied Bank to attract foreign investment. Besides this, the government is going to privatise Pakistan State Oil soon, which if sold to a foreign buyer would be a big source of foreign investment for the country.
http://www.dailytimes.com.pk/default.asp?page=2007\06\20\story_20-6-2007_pg5_5
