Foreign Direct Investment (FDI) in the country during the first half of 2006-07 soared by 66.73 percent, year-on-year, to $1.869 billion from $1.121 billion and portfolio investment increased by 74.53 percent to $627.1 million from $359.3 million, in the corresponding period of last year, according to the latest statistics released by the State Bank of Pakistan (SBP) on Monday.
Thus, on balance, total foreign private investment in six months increased by 68.62 percent, to $2.496 billion from $1.480 billion over corresponding period of last fiscal year.
It is pertinent to note that during the whole 2005-06 fiscal year, investment inflow was $3.872 billion against $1.676 billion of 2004-05, while for the current fiscal tear, there is hope of further improvement in foreign investment, especially with better macro-economic indicators and improvement in infrastructure.
A significant feature of the data has been that though the FDI inflow followed steep path right from the beginning of 2006-07 and increased enormously, portfolio investment has been fluctuating. However, during the period under review it has shown a sizeable growth.
According to break-up of investment by region, developed countries made a total investment of $1.719 billion, including FDI $1.226 billion and portfolio investment of $493.3 million. The developing economies invested $569.9 million (FDI $436.8 million and $133 million portfolio investment).
Among developed countries, Western Europe made a total investment (both FDI and portfolio) of $880.4 million, and European Union $762.7 million, against $416.6 million and $221.2 million, respectively, of last fiscal year. Besides, under unspecified head (investment by IFIs and other n.s.e) was $207.8 million. This includes FDI of $206.9 million and $0.9 million in portfolio.
Among developing economies, Caribbean Islands invested $13 million as FDI and $1.2 million portfolio investment during the period under review. Africa, including Libya, Egypt, Mauritius, South Africa and other African countries, invested $55.8 million.
Asian countries (West Asia, South, East and South East Asia) made total investment of $498 million, including $376.1 million FDI and $121.8 million portfolio investment. The break-up of investment further indicates that United States (US) was the biggest investor in Pakistan by investing $769 million, including $468.1 million FDI and $300.9 million portfolio investment.
United Kingdom (UK) was next with total investment of $683.6 million, including FDI of $460.2 million and portfolio investment of $223.5 million. United Arab Emirates (UAE) was third with total investment of $269 million ($133.2 million privatisation proceeds). It injected $251 million FDI and $18 million portfolio investment in the economy.
Singapore was the only country which made a sizeable investment of $120.4 million in Pakistan during July-December 2006-07 against only $2.7 million in corresponding period of last fiscal year. During the period under review, it (Singapore) made $107.7 million portfolio investment and $12.7 million FDI against only $-1.0 million and $3.8 million, respectively, in corresponding period of last fiscal year.
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