Pakistan's foreign investment drops 58 pct in July-Oct.
2011-11-22 11:16:21
The State Bank of Pakistan's latest data showed that investors remained cautious to inject foreign investment in Pakistan, which witnessed a fall of 58 percent in the first four months of current financial year (July 2011 to June 2012).
The Foreign Direct Investment (FDI) landed 340.2 million U.S. dollars with a drop of 27.7 percent compared with the corresponding period of previous fiscal year. Foreign Portfolio Investment (FPI) decreased by 200.8 percent in July-Oct. with an outflow of 102.1 million U.S. dollars.
The net foreign investment inflow was recorded from developing economies, particularly those from the Middle East countries. Whereas investment from developed countries shrank.
The FDI and FPI respectively recorded 198 million U.S. dollars and 5.4 million U.S. dollars from developing economies, mainly the UAE, Kuwait, and China.
The FDI and FPI from developed countries saw a steep drop in July-October, with FDI recorded at 36.4 million U.S. dollars and FPI witnessed an outflow of 107 million U.S. dollars.
The inflow of foreign investment in the country has continued to slow for the past five years owing to uncertain political, law and order situation of the country. The power and gas load shedding have further worsened the business situation to attract investment in the country.