NA question hour: Across the board decline in foreign investment

Several sectors could not attract investments as high as those in 2008-09.

ISLAMABAD: Net foreign direct investment (FDI) plummeted by 61 per cent to $1.4 billion in the last five years, raising a question mark on Pakistan’s ability to attract foreign investment as security concerns continue to haunt prospective investors.

This information was shared by the minister in charge for Prime Minister’s office with the Lower House during the National Assembly questions hour.

This is, however, not the deepest fall for FDI, which dropped by 77.9 per cent to $821 million during the fiscal year 2011-12, the minister in-charge told the NA.

Earlier this year, the figures released by the State Bank of Pakistan stated that the net foreign direct investment into Pakistan declined by 9.7 per cent to $504.4 million for the period August 2012 to February 2013, compared to the same period last year.

The minister informed the lawmakers further that total FDI from June 2008 to June 2013 was $9.78 billion. The net FDI for the period June 2008 to June 2009 was $3.7 billion, compared to $1.4 billion from June 2012 to June 2013.

Net FDI in trade has gone down drastically when traders invested only $5.7 million this year compared to $166 million for fiscal year 2008-09.

Similarly, the power sector saw a decline in foreign investment when business companies invested $84.9 million last year compared to $130.6 million in 2008-09. The textile industry also failed to attract foreign investors last year. Only $10 million were invested last year compared to $36.9 million in 2008-09.

Published in The Express Tribune, September 26^th, 2013.