FDI remained $63.5 million in March, 45.6% less than $116.8 million recorded in the same month of the preceding fiscal year. PHOTO: FILE
KARACHI: Pakistan received foreign direct investment (FDI) of $669.8 million in the first nine months of 2013-14, which is 6.14% higher than the amount the country received in the corresponding nine-month period of the preceding fiscal year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
FDI remained $63.5 million in March, 45.6% less than $116.8 million recorded in the same month of the preceding fiscal year.
FDI in the first half of the ongoing fiscal year was $416.1 million, 26.8% lower than the amount the country received in the corresponding six months of the preceding fiscal year. Pakistan received FDI worth over $1.4 billion in 2012-13.
The oil and gas sector attracted the highest amount of FDI in the July-March period. It attracted a net foreign investment of $346.9 million. However, it was 18.58% lower than the investment of $426.1 million that the sector received in the corresponding nine-month period in the preceding fiscal year.
Sectors of the economy that received major FDI during the last nine months include financial businesses ($118.7 million), chemicals ($76 million), tobacco and cigarettes ($55.5 million), food ($73 million) and beverages ($23.5 million).
In contrast, a major dip in FDI was registered in the telecommunications sector, where the net outflow of investment remained $138.4 million during the period under review. Other sectors that witnessed a considerable net outflow of FDI in July-March were petroleum refining ($13.2 million), electrical machinery ($10.8 million), trade ($15.2 million) and transport ($5.8 million).
As for foreign portfolio investment (FPI), which includes foreign public investment, Pakistan attracted $112.9 million during the July-March period, down 42% from $194.9 million in the comparable nine months of the last fiscal year.
Countries that brought significant amounts of FDI into Pakistan during the period under review include Switzerland ($193.3 million), United States ($172.1 million), Hong Kong ($174 million), United Kingdom ($82 million), Italy ($52.6 million), France ($53.5 million), Austria ($47.4 million) and Oman ($35.4 million).
Countries that took out major investments out of Pakistan in the last nine months are Norway ($41.3 million), Qatar ($43.9 million), Saudi Arabia ($33.5 million) and Singapore ($35 million).
Published in The Express Tribune, April 16th, 2014.
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@Concerned Pakistani: Please note that Black money could never be converted in to White money, you need not to concerned there is nothing wrong with FDI from specific country as it is channeled through different financial institutes. its just a good news showing confidence of investors. BE POSITIVE
Am I the only one raising eyebrows on Switzerland being the largest FDI contributor? Is that black money coming back into the country and being turned into white money?
No Turkey and no China.... Big Question???