The Oil and Gas, Power sectors and Construction Industries supported total foreign investment of the country, which increased by 105 per cent to $2.323 billion in the last ten months of the current fiscal year, compared with $1.133 billion in the same period last year, the data released by the State Bank of Pakistan (SBP) said here on Monday.
However, the country received a direct investment of $1.733 billion in July-Apr 2016-17, up by 12.7 per cent compared to $1.537 billion in the same period last year. In April 2017, the country received inflows of $131.8 million in the head of direct investment, while it received $90 million in total foreign investment; down by 13 per cent compared to $102 million received in April 2016.
During July-April 2016-17, the SBP received an amount of $977.5 million in Foreign Public Portfolio Investment (Debt securities), which increased by $996.8 million during July-April 2016-17 which was in (negative) $19.3 million in the same period last year, the data said.
In the portfolio investment (equity market), the country recorded an outflow of $387.8 million in last ten months compared to a $385 million withdrawal in the same period last year.
Out of this investment, Dutch company FrieslandCampina’s invested $459.5 million in Engro Food in December 2016, while the Chinese companies invested $718 million in different projects of the country and other CPEC projects in the last ten months.
In the month of April 2017, the country has received $131.8 million through direct investment. The country recorded inflows of $180.5 million compared with outflows of $48.7 million. In April this year, Chinese companies poured $123.5 million into their Pakistani projects.
Major investments the country received were from; China ($718.3 m), France ($171), Hungary ($32.2 m), Italy ($47.4 m), Japan ($38.8m), Netherland ($466.4 m), UAE ($47.7 m), USA ($47.9 m) and Turkey ($133.8 m) in different sectors. Meanwhile, Saudi Arabia, Norway, Bahrain, and Egypt pulled back their investments from Pakistan during the last ten months.
In April 2017, the country received the biggest investment of $123.5 million from China in development projects of China-Pakistan Economic Corridor (CPEC), Hungary made an investment of $8 million, Italy $5 million, Japan $5.6 million and UAE invested $6.1 million, the SBP’s data said.
Outflows of $26.2 million were recorded in portfolio investment (equity securities) in April 2017, owing to the uncertainty in local stocks, but now the inflows may increase in equity market because of the recent MSCI inclusion, the analyst said.
In Jul-April 2016-17, the foreign private investment in the country stood at $1.345 billion, up by 16.7 per cent compared to $1.153 billion received in the same period last year.
The country’s total foreign direct investment increased by 105 percent to $2.323 billion in last ten months only because of the Dutch company’s investment in Engro Foods, the analyst claimed. The country has received another big investment of above $171 million from France. The data did not show where such investment is being made in Pakistan.
After touching the highest level of $24.6 billion, the forex reserves declined to $20.790 billion last week. The stock market has again closed highest level on Monday with closing at 52.387 points. There is a negative trend in portfolio’s inflows. The MSCI will upgrade Pakistan’s stocks in emerging markets from 1st June 2017 this year which will also support PSX, another analyst claimed.
During last ten months, overseas Pakistani workers remitted $15.596 billion, down by $448 million or 2.8 per cent compared with $16.044 billion. During April 2017, the inflow of workers’ remittances amounted to $1.539 million, which is 9.2 per cent lower than March 2017 and 7.11 per cent less than April 2016.
