Foreign Direct Investment (FDI) in Pakistan dropped by 56.1 percent in 2009, revealed the latest World Investment Report (WIR) for 2010 released by the United Nations Conference on Trade and Development (Unctad). According to the report, FDI in Pakistan declined by 56.1 percent, as Pakistan received $2.38 billion in 2009 as compared to $5.43 billion in 2008.
India''s FDI decreased by 14.36 percent as it received $34.61 billion in 2009 as compared to $40.14 billion in 2008. Bangladesh witnessed a decline in FDI by 36 percent receiving $716 million in 2009 as compared to $1.086 billion FDI in 2008. Sri Lanka''s FDI declined by 46.27 percent as it received $404 million FDI in 2009 as compared to $752 million in 2008. Afghanistan''s FDI declined by 38.33 percent as it received $185 million FDI in 2009 as compared to $300 million in 2008.
On the other hand other regional countries namely Nepal and Bhutan posted growth in FDI in 2009, the WIR said. The FDI in Nepal was $39 million in 2009 compared to $1.0 million in 2008 and the FDI of Bhutan was $36 million in 2009 compared to $30 million in 2008.
According to economists, "although the global economic meltdown was also a reason of slow growth in FDI, the domestic shocks such as political instability, terror attacks, power, gas and water shortages and weak law order were also major contributors to the declining trend of FDI.
"The FDI flows to developed countries experienced the largest decline (44 percent) in 2009 among all regions and sub regions. Among the developing economies which as a whole registered a 24 percent fall in inflows - South, East and South-East Asia showed the smallest decline (17 percent) and remained the largest recipient, accounting for almost half of the total inflows. Africa recorded a decrease of 19 percent in 2009," the report said.