Total foreign investment in the country enhanced by 46.5 per cent to $1.934 billion in last eight months of the current fiscal year, mainly supported by power, food and oil and gas sectors, the data revealed by SBP said.
During the period, the central bank received an amount of $1.003 billion in Foreign Public Portfolio Investment (Debt securities), which increased by 120.1 per cent during July-Feb 2016-17, the data said.
In the portfolio investment, the country recorded an outflow of $353.2 million in the last eight months, compared to a $347.6 million withdrawal in the same period last year.
The Direct Investment (DI) has been improving for the last three months and it increased by 6 per cent, to $1.284 billion in July-Feb 2016-17. Out of this investment, the Dutch company FrieslandCampina’s invested $459.5 million in Engro Food in December 2016, while the Chinese companies invested $264.8 million in power sector of the country in the last eight months.
In the month of February 2017, the country has received $123 million through the direct investment. The country recorded inflows of $128.3 million while outflows of $5.3 million in February 2017. In January, the Chinese companies poured in $27.1 million.
Major investments the country received are from China, France, Hungary, Italy, Japan, Netherland UAE, USA and Turkey in different sectors, meanwhile, Saudi Arabia, Norway, Bahrain, and Egypt pulled back their investments from Pakistan during the last seven months.
In February 2017, the country received the biggest investment of $43.5 million from France, while China has made an investment of $27.1 million in development projects of the China-Pakistan Economic Corridor (CPEC), and UAE invested $15.7 million, the SBP’s data said.
“Outflows of $353.2 million were recorded in portfolio investment in equity securities, despite touching the highest level of 50,200 point level,” the analysts said.
In Jul-Feb 2016-17, the foreign private investment stood at $931.2 million, up by 7.7 per cent, compared to $864.3 million received in the same period last year.
The country’s total foreign direct investment increased by 46.5 percent to $1.934 billion in the last eight months, only because of Netherland’s company investment in the Engro Food, the analyst claimed. The country has received another big investment of $47 million from France. However, the data did not show where such investment is being made in Pakistan.
The country has recorded inflows of direct investment $1.586 billion in Jul-Feb 2016-17, but the outflows were recorded $302.3 million in the same period, the SBP data said.
A Chinese-led consortium has also paid $87 million against a 40 percent stake in the Pakistan Stock Exchange (PSX) and such amounts would be included in the FDI in the month of March.
After touching the highest level of $24.6 billion, the forex reserves declined to $22.013 billion last week. The market had touched 50.200 points level at the PSX, but nowadays it is in a downward position and it closed at 48,289 point level today. There is a negative trend in the portfolio’s inflows. The MSCI will upgrade Pakistan’s stocks in emerging markets in May this year which will also support the PSX, another analyst claimed.
During last eight months, the remittances of the country have also declined to $12.363 billion, down by $314 million or 2.4 per cent compared with $12.677 billion received during the same period in the preceding year.
During February 2017, the inflow of worker’s remittances amounted to $1.417 billion, which is 4.7 per cent lower than January 2017 and 6.9 per cent less than February 2016.
