Foreign direct investment amounts to $1.16b in 7MFY17, up 10%
Netherlands leading investor due to acquisition in food sector
PHOTO: EXPRESS
KARACHI:
Foreign direct investment (FDI) in Pakistan increased by 10% to $1.16 billion in the first seven months (Jul-Jan) of the ongoing fiscal year 2016-17, compared with $1.06 billion in the same period of the previous year, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
In January 2017, however, FDI amounted to $80.8 million, up 3.4% compared with $78.1 million in January 2016.
Pakistan has recorded low levels of foreign investment in recent years. Many foreign investors especially from western countries have pulled out because of a persistent energy crisis, poor governance and security challenges.
At a time when western investors are withdrawing their investments from Pakistan, Chinese investors are pouring cash mainly due to the China-Pakistan Economic Corridor (CPEC) projects.
However, the Netherlands is the leading investor in Pakistan in the first seven months (Jul-Jan) of 2016-17.
Overall, FDI inflows from the Netherlands touched $456 million in the first seven months (Jul-Jan) of the current fiscal year 2016-17 compared with just $9.6 million in the same period of last year.
China came at second place with total FDI inflows of $244 million in the first seven months, down by a massive 48% compared to $466 million in the same period last year.
Turkey was at number three as it brought investments of $130 million in the seven months of 2016-17 compared with just $8 million in the corresponding period of last year.
Winners
The biggest jump in FDI was recorded in the food sector that attracted $468 million in the first seven months as opposed to the outflow of $33 million in the corresponding period of previous year. In July 2016, the Netherlands-based dairy company bought 51% shares in Engro Foods at an estimated $448 million, the single largest private-sector FDI in Pakistan in recent years.
The second highest jump was recorded in the electronics sector where the country received $135 million in Jul-Jan 2016-17, up 335% compared with $31 million in the same period of last year. The sector remained in the limelight in 2016 because of Turkish investment in a major electronics company in Pakistan.
Losers
The power sector attracted $245 million in the first seven months, down 50% compared with $489 million in the same period of last year.
FDI, which is a vital driver of a country’s economy, has dropped significantly in Pakistan since 2008 mainly because of political uncertainty, security issues and energy shortages.
Pakistan received $5.4 billion in fiscal year 2008, which was the highest FDI in the country’s history, according to the Board of Investment (BoI).
Published in The Express Tribune, February 16th, 2017.
Foreign direct investment (FDI) in Pakistan increased by 10% to $1.16 billion in the first seven months (Jul-Jan) of the ongoing fiscal year 2016-17, compared with $1.06 billion in the same period of the previous year, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
In January 2017, however, FDI amounted to $80.8 million, up 3.4% compared with $78.1 million in January 2016.
Pakistan has recorded low levels of foreign investment in recent years. Many foreign investors especially from western countries have pulled out because of a persistent energy crisis, poor governance and security challenges.
At a time when western investors are withdrawing their investments from Pakistan, Chinese investors are pouring cash mainly due to the China-Pakistan Economic Corridor (CPEC) projects.
However, the Netherlands is the leading investor in Pakistan in the first seven months (Jul-Jan) of 2016-17.
Overall, FDI inflows from the Netherlands touched $456 million in the first seven months (Jul-Jan) of the current fiscal year 2016-17 compared with just $9.6 million in the same period of last year.
China came at second place with total FDI inflows of $244 million in the first seven months, down by a massive 48% compared to $466 million in the same period last year.
Turkey was at number three as it brought investments of $130 million in the seven months of 2016-17 compared with just $8 million in the corresponding period of last year.
Winners
The biggest jump in FDI was recorded in the food sector that attracted $468 million in the first seven months as opposed to the outflow of $33 million in the corresponding period of previous year. In July 2016, the Netherlands-based dairy company bought 51% shares in Engro Foods at an estimated $448 million, the single largest private-sector FDI in Pakistan in recent years.
The second highest jump was recorded in the electronics sector where the country received $135 million in Jul-Jan 2016-17, up 335% compared with $31 million in the same period of last year. The sector remained in the limelight in 2016 because of Turkish investment in a major electronics company in Pakistan.
Losers
The power sector attracted $245 million in the first seven months, down 50% compared with $489 million in the same period of last year.
FDI, which is a vital driver of a country’s economy, has dropped significantly in Pakistan since 2008 mainly because of political uncertainty, security issues and energy shortages.
Pakistan received $5.4 billion in fiscal year 2008, which was the highest FDI in the country’s history, according to the Board of Investment (BoI).
Published in The Express Tribune, February 16th, 2017.