ISLAMABAD: Foreign Direct Investment (FDI) has presented a dismal performance and posted some 38 percent decline during the first quarter of this fiscal year.
Pakistan Industrial and Traders Associations Front (PIAF) Chairman Irfan Iqbal Sheikh, quoting the State Bank of Pakistan (SBP) data, revealed that FDI continuously moving down and fell by 38 percent during July-September of FY17 compared to same period of last fiscal year. Pakistan fetched FDI amounting to $249 million during the first quarter of FY17 compared to $403 million in the corresponding period of FY16, depicting a decrease $154 million.
However, the second component of foreign investment – portfolio investment – has posted a surge of 130 percent because of improvement in the country’s equity market, the PIAF chairman said. Net inflows of foreign investment in Pakistan comprising FDI, portfolio investment and foreign private investment fell by 54 percent during July-September of FY17. With the current decline, total foreign investment stood at $368 million at the end of first quarter of this fiscal year compared to $793.2 million in the same period of last fiscal year, depicting a decrease of $425 million. Irfan said foreign investors always seek a peaceful environment and basic infrastructure including utilities for fresh investment, therefore the government should ensure availability of basic necessities to attract more foreign investment.
Experts believe that political uncertainty and lake of infrastructure is largely contributing to lower foreign investment in Pakistan. Political parties should shun their differences for the sake of their country betterment and join hands with the government and the private sector for implementation of national agenda for economic revolution.
