According to data released by the State Bank of Pakistan (SBP) on Monday, FDI increased by $135.7 million year-on-year in July-October, as it amounted to $288.1 million in the first four months of 2013-14.
FDI remained $254.3 million in October, up 208% from the preceding month. FDI in 2013-14 clocked up at $1.63 billion after increasing by 11.99% on an annual basis. The increase during the last fiscal year was mainly on the back of the auction of the telecom spectrum that fetched the government $610.9 million in May.
There was a net inflow of FDI amounting to $109.3 million from the telecommunications sector in July-October. In contrast, the same sector had registered a net outflow of $101.3 million of FDI during the same period of the last fiscal year. FDI in the telecommunications sector in October alone amounted to $142 million.
The largest increase in FDI in July-October was in the category of oil and gas exploration, which attracted $130.5 million. However, it was 10.6% less than the foreign investment received during the same months of the preceding fiscal year when it totalled $146 million.
Financial businesses attracted $48.6 million worth of FDI in July-October. However, it was down 7.25% from the corresponding four-month period of the preceding fiscal year.
Other sectors of the economy that received major FDI in July-October include chemicals ($46.7 million), tobacco and cigarettes ($35.1 million) food ($16.9 million), trade ($10.4 million), personal services ($14.5 million), textiles ($15.7 million), power ($25.3 million) and cars ($9 million).
Sectors of the economy that experienced a considerable net outflow of FDI in the first four months of the current fiscal year were pharmaceuticals (-$47 million) and cement (-$4.5 million).
As for foreign portfolio investment (FPI), which includes foreign public investment, Pakistan attracted $146.4 million during July-October, which is 3.7% higher than the FPI worth $141.2 million received in the comparable months of 2013-14.
FPI in 2013-14 was $2.74 billion, up 21 times from $124.2 million received in the preceding fiscal year.
Countries that brought significant amounts of FDI into Pakistan in July-October include China ($163.4 million), United States ($75.2 million), Hong Kong ($74.6 million), United Kingdom ($43.2 million), Switzerland ($42.5 million), France ($23.6 million), Norway ($22.7 million), Japan ($12.7 million), Italy ($25.2 million), Egypt ($8.1 million) and Austria ($12.7 million).
Countries that took out major investments out of Pakistan during the last four months are Qatar (-$19.8 million), Saudi Arabia (-$19.5 million), United Arab Emirates (-$8 million), Singapore (-$15.2 million), Malaysia (-$7.3 million), Canada (-$8.2 million), Finland (-$8.3 million) and Luxemburg (-$6.6 million).
Published in The Express Tribune, November 18th, 2014.
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This is one off, telecom sectors are not sold every quarter ! What is alarming as to the level of flight of capital and especially the Nation responsible, as they are unlikely to return in near future ! That should be the headline !