Foreign Direct Investment In Pakistan Edges Up 2.56 Percent In January: Central Bank
It however declines in comparative periods of July-Jan 2017-18-19
LAHORE MIRROR REPORT– The Foreign Direct Investment (FDI) in Pakistan recorded a growth of 2.56 percent to US $132.2 million in January this year compared to the FDI valuing $128.9 million in January last year.
On average, the FDI however recorded a decline of 17.6 percent, falling from $1.761 billion in July-January 2017-18 to $1.451 billion in first seven months of current fiscal year, official figures released by the State Bank of Pakistan show.
Net foreign investment from China dropped to $819.6 million during the period under review compared to the investment worth $1,145 million recorded during same period of 2017-18.
The FDI from United States plunged from $513.4 million in Jul-Jan 2017-18 to $151.4 million in same period of current fiscal year.
However foreign investment from United Kingdom jumped from $48.2 million to $112.3 million in first seven months of current fiscal year.
Similarly FDI from United Arab Emirates also increased from negative $28.7 million in the corresponding period of previous year to $55.8 million in same period of current year.
From Turkey, the FDI increased to $42.3 million as compared to the investment worth of $10.9 million last year, whereas investment from Sweden the investment decreased to negative $6.2 million in the period under review compared to the investment of $10.4 million last year.
Investment from Saudi Arabia also increased from $0.9 million last year to $4.8 million during Jul-Jan 2018-19.
Netherlands invested $57.3 million during the corresponding period of current year whereas during same period last year, the investment was recorded at $56.8 million.
Investment from Hong Kong took a long stride as it jumped to $25.5 million from negative $181.7 million last year, whereas Germany’s investment also rose to $32 million this year from $23.4 million last year.
The sector wise data shows that investment in oil and gas exploration stood at $145.1 million during the period under review compared to the investment of $121.6 million during Jul-Jan 2017-18.
In construction sector the investment however recorded a negative growth as it fell to $288.9 million over the period from July through January this year compared to the investment of $386.2 million during same period of last year.
In chemical sector the investment also jumped to $83.5 million during the period under review from $17.3 million in July-Jan 2017-18, whereas the investment in electrical machinery also rose from $13.8 million last year to $126.4 million in July-Jan 2018-19.
Economic analysts are of the view that the repeated visits of Prime Minister Imran Khan to Saudi Arabia and United Arab Emirates (UAE) and in return the state visits of crown princes of both leading Arab economies to Pakistan with billions of dollars investments pledges imply that FDI’s volume would increase multi-fold.
They say the security environment in Pakistan that faced the wreath of terrorism in the last 15 years or so has very much improved because of country-wide operations against militants.
“The two-day visit by Saudi Crown Prince Mohammed bin Salman who announced US $20 billion worth investment deals will be a major push factor for FDI in Pakistan”, said a senior official from federal government.