ISLAMABAD: Foreign Direct Investment (FDI) witnessed 24 per cent decline to reach $350.8 million in first four months of the current fiscal year, as compared to $462.5 million received in the same period last year.
According to the State Bank of Pakistan (SBP), the total investment of country stood at $711.6 million in July-Oct 2015-16 up 18.5 percent or $111.2 million compared to $600.4 million received in the same period last fiscal year.
However, total private investment of the country decreased to $206.4 million in last four months down by 67.2 percent compared to $630.3 received in same period last year.
The country recorded direct investment of $350.8 million in last four months compared to $462.5 million in same period last year, while the outflows were recorded at $301.4 million in July-Oct this year. The analyst said: “Investment scenario is changing as the direct investment of the country is continuously declining and no new company invested in Pakistan except Chinese companies during the last four months.”
In the bourses, the portfolio investment of the private sector remained in negative as outflows were recorded at $144.4 million in last four months, which was at $167.6 million in the same period last year.
Analysts said the foreign investors were pulling their investment from the local bourses for last few months because of political uncertainty and law and order situation in Pakistan.
The foreign public investment has gone up by 1792 percent to $505.2 million in July-Oct this year compared to negative $29.8 million received in July-Oct 2014-15. This amount is received in the local bourses.
In October 2015, the country recorded direct investment of $113.6 million compared to $266.9 million received in October 2014. The country received $134 million through direct investment, while $23.6 million through portfolio investment. There were outflows of $44.7 million from the stock markets.
Largest contributor to the FDI in Jul-Oct was China with $272.8million, followed by the United Arab Emirates who invested $71.5 million, United Kingdom with $41.4 million and Switzerland invested $40.5 million.
Meanwhile, the investors of United States of America (USA) were on top who withdrew an amount of $104.5 million in last four months followed by Saudi Arabia of $42.5 million and Egypt who withdrew an amount of $15.5 million.
