The State Bank of Pakistan (SBP) reported on Monday that total foreign private investment in July-October 2005-06 increased by 127 percent to $682 million from $300.3 million in corresponding period of last year.
During the first four months of 2005-06, foreign direct investment (FDI) increased by 69 percent year-on-year to $465.7 million from 275.3 million and portfolio investment by 765 percent to $216.3 million, as it was $25 million in corresponding period last year.
A significant feature of the data was that besides FDI, year-on-year basis inflow of portfolio investment in the country was enormously increased. It caught steep trend right from the beginning of the new fiscal.
It is pertinent to note that during 2004-05, total investment inflow had crossed $1.67 billion mark as against $0.921 billion in 2003-04. However, for the current fiscal year the government circles hope further improvement in foreign investment, especially with the improvement in macroeconomic indicators and infrastructure.
Comparing inflow of foreign private investment in October with the same month last year, the data shows that it increased by 111 percent to 208.3 million, as it was 98.5 million during October 2004.
Among this FDI increased by 45 percent to 136.9 million and the portfolio investment jumped to 71.4 million in October 2005 as compared to 4.3 million in October 2004.
The breakup of investment by countries shows that United States (US) was the biggest investor in Pakistan with $117.7 million and portfolio investment $138.7 million, totalling $256.3 million during July-October, 2005-06.
United Kingdom (UK) is next with total investment of $95.5 million, including FDI of $53.2 million and portfolio investment $42.3 million. However, in terms of direct investment, UK was third following United Arab Emirates (UAE) with $67 million.
A significant feature of the data is that US portfolio investment during the period showed a high growth, as in July-October it grew to $138.7 million from $12.5 million during corresponding period last year. Besides, this its FDI also grew to $117.7 million from $79.5 million.
UAE''s direct investment jumped to $67 million as it was $1.3 million in July-October, 2004-05. However, its portfolio investment declined to $7 million from $18.8 million.
Netherlands'' FDI was also sizeable at $24.9 million but its portfolio investment was stagnant at $0.1 million.
Direct investment from UK slightly declined to $53.2 million as against $62.7 million and portfolio investment of 42.3 million was $2.5 million in July-October last year.
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