Country’s direct investment surges to $1.146.4bn in July-Nov 2017

Total foreign investment decreased by 43.6 per cent to $ 1 billion

KARACHI: The country has received an amount of $ 1.146 billion in the head of foreign direct investment (FDI), up by 57.2 per cent or $ 417 million during first five months of the current fiscal year compared to $ 729.4 million in the same period last year. Out of the total investment, Chinese companies invested $ 840.6 million in Pakistan during last five months.

In November 2017, the country has received $ 206 million as direct investment. The country received inflows of foreign investment of $ 299 million, while investors pulled back their $ 92.5 million in the same period, the data released by the State Bank of Pakistan (SBP) said here Friday.

Foreign private investment stood at $ 1.050 billion up from 65.7 per cent during July-Nov compared to $ 633.8 million in the same period last year.

During November 2017, the SBP has recorded outflows of an amount of $ 49.6 million in the head of Foreign Public Portfolio Investment (Debt Securities), which further decreased by negative 104.4 per cent during July-Nov this year which was in plus at $1.190 billion in the same period last year, the data said.

In portfolio investment (Equity Market), the country recorded an outflow of $ 96.1 million in July-Nov this year compared with a negative $ 95.6 million investment in July-Nov 2016.

The Chinese companies under the China Pakistan Economic Corridor (CPEC) invested an amount of $ 840.6 million in July-Nov 2017, while Malaysia invested $ 112.6 million and UAE invested $ 25.9 million in Pakistan.

Major investment the country received are from USA ($ 42.6 million), United Kingdom ($ 19.7 million), Japan ($ 19.2 million), Italy ($ 18.3 million), Hungary ($ 32.6 million), and France ($ 48.1 million) in different sectors, meanwhile Norway, Kuwait and Finland pulled back their investment from Pakistan during July-Sept 2017.

The country recorded inflows of the direct investment of $ 1.364 billion compared with an outflow of $ 218.2 million in July-Nov this year.

In November 2017, the country received major investment in the power sector of $ 116.5 million, Oil and Gas Exploration that received $ 16.1 million, and $ 94.5 million in Construction Industry, the SBP’s data said.

“There was a negative investment in the equity market because of the continuous sliding Pakistan Stock Market,” the analyst claimed. There is no new major investment in the country and only Chinese Companies are pouring their investment in their projects during last five 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 had declined to below $ 19 billion. However, after receiving $ 2.5 billion, the total reserves touched $ 20.8 billion again. The stock market had almost lost 13,000 points from its peak at 43,000 points after touching the highest level of 52.387 points in the first week in June this year.

Arshad Hussain
Arshad Hussain
The author is business reporter at Pakistan Today. He can be reached at [email protected]. He tweets @ArshadH47736937

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