Pakistan received foreign direct investment (FDI) of $24 million in the first month of 2014-15, which is almost 80% less than the FDI received during the same month of the preceding fiscal year.
According to data released by the State Bank of Pakistan (SBP) on Monday, FDI decreased by $95.1 million year-on-year in July, as it amounted to $119 million in the first month of 2013-14.
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 outflow of FDI amounting to $11.6 million from telecommunications sector in July. In contrast, the same sector had registered the largest increase in foreign investment to the tune of $568.1 million during the last fiscal year. FDI in the telecommunications sector in June amounted to $97.2 million. It was $24.3 million in July 2013.
The largest increase in FDI in July was in the category of oil and gas exploration, which attracted $26.3 million. It was 31.6% less than the foreign investment received during the same month of the preceding fiscal year when it totalled $38.5 million.
The food sector attracted the second highest FDI in July, with net foreign investment of $13 million, up 10.1% from the corresponding figure recorded in July 2013.
Other sectors of the economy that received major FDI in July include trade ($10.4 million), financial businesses ($11.8 million), tobacco and cigarettes ($10 million), personal services ($8 million), textiles ($5.1 million) and power ($3.8 million).
Sectors of the economy that experienced a considerable net outflow of FDI in the first month of the current fiscal year were pharmaceuticals ($51.8 million), telecommunications ($11.6 million) and cement ($9.1 million).
As for foreign portfolio investment (FPI), which includes foreign public investment, Pakistan attracted $67 million during July, which is 23.1% higher than the FPI worth $54.4 million received in the comparable month 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 include United States ($20.3 million), Hong Kong ($18.6 million), United Kingdom ($14.2 million), France ($6 million), Norway ($5.7 million) and Italy ($4.8 million).
Countries that took out major investments out of Pakistan last month are Switzerland ($27.6 million), United Arab Emirates ($9.6 million), Qatar ($4.9 million) and Saudi Arabia ($4.9 million).
Published in The Express Tribune, August 19th, 2014.
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Thank you Nawaz Sharif for your 30 years of experience of ruining the country is really paying off!
@Syed Jalal Kashmiri: " Pakistan’s economy will boom once Indian occupation of Kashmir is ended." +++++++++++++++++++++++++++++++++++++++++++++++++++ OK. Thts like saying that Pakistan's economy will never boom.........
Thank you Imran Khan! The country appreciates your effort to destroy investor confidence and our economy!!
Pakistan's economy will boom once Indian occupation of Kashmir is ended. Kashmir is the missing peace to restore the glory of Pakistan.