Karachi: Pakistan received foreign direct investment (FDI) of $457.2 million in July-August 2017, up by 155 per cent or $277.8 million compared to $179.4 million in same period last year.
In August 2017, the country received an amount of $258.2 million in the head of direct investment, while investors pulled back their $23.7 million.
“Oil and Gas, Power Sectors and Communication Industries supported total foreign investment of the country, which increased by only 37.1 per cent to $301.8 million in the first two-month of current fiscal year compared with $220.2 million in the same period last year, the data released by the State Bank of Pakistan (SBP) said here on Monday.
During August 2017, the SBP has recorded outflows of $49.6 million in the head of Foreign Public Portfolio Investment (Debt Securities), which further decreased by 56,253 per cent during July-August 2017 which was in (negative) $0.1 million in the same period last year, the data said.
In the portfolio investment (Equity Market), the country recorded an outflow of $105.7 million in July-August this year compared with an inflow of $40.9 million in July-Aug 2016.
Out of this investment, the Chinese companies under the China Pakistan Economic Corridor (CPEC) invested an amount of $259.4 million in July-Aug 2017, while Malaysia invested $110.6 million and UAE invested $18.5 million in Pakistan.
Major investment, the country received from was USA ($13.1m), Sweden ($5.5 m), Japan ($10.2 m), Italy ($7.3m), Hungary ($13.3 m), and France ($19 m) in different sectors, meanwhile Norway, Kuwait and Finland pulled back their investment from Pakistan during July-August 2017.
The country recorded inflows of the direct investment of $505.9 million compared with an outflow of $48.8 million in July-August this year.
In August 2017, the country received major investment in power sector of $154.3 million most of them from China in the development projects of CPEC ($130 million in Coal Projects), Oil and Gas Exploration that received $10.6 million and $35 million in Construction Industry, the SBP’s data said.
The analyst said, “Total direct investment has surged as the Chinese companies pour their investment in their projects during last three months.” “Otherwise, the foreign investment is about to nil, he added.
Pakistan has received an amount of $2.157 billion in the last fiscal year (2016-17) compared to $1.976 billion in 2015-16.
After touching the highest level of $24.6 billion, the forex reserves declined to $20.585 billion on last Thursday. The stock market had almost lost 11,000 points from its peak at 43,000 points after touching highest level of 52.387 points in first week on June this year.
Overseas Pakistani workers remitted $3.496 billion, up by 13.17 per cent in the first two months (July to August) of 2017-18, compared with $3,089 billion received during the same period in the preceding year.
During August 2017, the inflow of worker’s remittances amounted to $1.954 billion, which is 26.78 per cent higher than July 2017 and 11 per cent higher than August 2016.
During fiscal year 2016-17, Overseas Pakistani workers remitted $19,304 billion down by 3.1 per cent or $610 million, compared with $19,917 billion received during the same period in the preceding year.
