Foreign investment rises in Pakistan

ISLAMABAD: The inflow of foreign direct investment
(FDI) in Pakistan marked an impressive increase of 61
percent in the first six months of this financial
year, according to the data released by State Bank of
Pakistan on Monday.

In the period from July to December the country had
received $445 million as foreign direct investment as
against $277 million in the same period last fiscal.

The key sectors which attracted a significant amount
of FDI are oil and gas $107.1 million, communication
$60 million, power $37.4 million, chemicals $28.1
million, trade $23.3 million, financial business $45.4
million while other sectors received $143.6 million
foreign investment during the period under review.

The United States had taken the lead during this
period and the US invested $118.6 million while the
United Kingdom remained the second major investor with
$84.8 million investment in Pakistan in six months of
this fiscal. According to country-wise break-up the
major countries like Netherlands invested 23.8 percent
of the total FDI, Japan 23.8 percent, Hong Kong 14.8
percent while 12 percent of the FDI was received from
UAE.

Meanwhile, the net inflow of foreign portfolio
investment in Pakistan amounted to $59.3 million in
July to December this fiscal as against $18.3 million
negative investment in the same period last fiscal.
Total investment in the country amounted to $504.3
million in first six months of this fiscal, compared
with $258.8 million in the corresponding period of
last fiscal, showing an increase of $245.5 million
this year.

Pakistan received $146.6 million total investment from
the United States, $94.8 million from United Kingdom,
$34.5 million from the United Arab Emirates, $5.1
million from Germany, $15.5 million from Kong Kong,
$22.3 million from Japan, $24 million from
Netherlands, etc. In a statement issued on Monday, the
Board of Investment said that the substantial increase
in the inflow of FDI is an indicator that investment
climate in Pakistan is improving.

Recently German delegation of Daimler Chrysler and
Coastal Group of UAE visited Pakistan and expressed
interest to make $3 billion investment in hydel-power
generation and automobile sectors while Metro Group
decided to establish 3-4 outlets at Karachi and
Lahore, the statement said. -Staff Report