ISLAMABAD: Foreign Direct investment (FDI) in the country increased by 11 per cent in the first eight months of current fiscal year 2014-15, while china remained highest investor with $175 million in same period.
Total FDI during July-Feb 2014-15 was $615 million compared to $553 million in the same period of last year 2013-14, The Gulf Today reported.
The State Bank of Pakistan reported on Wednesday that total foreign inflows, including foreign debt securities, rose to $1.776 billion.
Debt securities are the debts issued by a government or corporation that may be traded. The original buyer of the debt security lends the issuer money in exchange for security.
According to SBP, the debt securities under the head of `foreign portfolio investment’ jumped to $974 million in July-Feb compared to just $68 million a year earlier.
While the foreign exchange reserves have found a stable position with $16 billion, the rising foreign debt is still a serious concern for the stakeholders of the economy.
The International Monetary Fund (IMF) recently praised the government’s economic policies while Moody’s appreciated Pakistan’s efforts to reform economy despite disruptive political challenges and security issues.
Foreigners, mainly from UAE, China and other countries are more interested in investing in various projects in Pakistan.
In fact, the highest FDI worth $175 million was received from China during the eight months, the paper reported.
Other top investors were UAE ($153 million), the United States ($117million) and the UK ($63 million).
The highest net outflow of FDI during the period under review was from Saudi Arabia which withdrew $85 million. The country’s net outflow in the same period of last year was $27 million.
In the first eight months of last fiscal year, Switzerland was the biggest investor with $157 million FDI.
