| GEO Business|
| FDI falls 54pc during Jul-Jan|
| Updated at: 1552 PST, Tuesday, February 16, 2010|
ISLAMABAD: Pakistan during July-January 2009-10 attracted 54.6 per cent or $1.41 billion less foreign direct investment (FDI) compared to the same period of last year, the State Bank of Pakistan reported on Monday.
According to the bank’s latest data, in the first seven months of the year, FDI inflows were recorded at $1.176 billion against July-January 2008-09 when they stood at $2.59 billion.
Portfolio investment increased by 181.7 per cent to $290.7 million against negative $355.8 million in the same period last year.
According to the break-up of investment by region, direct investments from developed countries in Pakistan declined by 34.5 per cent to $827.4 million and portfolio investment was up by 209.5 percent to $317.8 million during the period under review. Last year in same period, FDI stood at $1.263 million and negative $290.2 million respectively.
Among developed countries, FDI inflows from Western Europe stood at $385.8 million and portfolio investment at $77.7 million. Last year in the same period, FDI inflows from Western Europe were $560.7m and portfolio investments were negative $70m.
FDI from European Union was recorded at $340.2m and portfolio at $74.7m against the last year when FDI stood at $305.7m and portfolio at negative $38.8 million.
Developing economies’ direct investment into Pakistan declined substantially. FDI from these economies declined by 87.8 per cent to only $128.2m and portfolio investment was up by 126.7 per cent to $8.5 million. Last year, direct investment stood at $1.054 billion and portfolio investment at negative $32 million.
Direct investments from Asian countries (West Asia, South, East and South East Asia) in Pakistan were down by 81 per cent to $124.4m against $656.3m recorded in previous year. Portfolio investments from these countries were up by 126 per cent to $10.2m against negative $39.3m last year.
The United States of America (USA) was the major investor in Pakistan with a total investment of $588m (FDI $347.5m and portfolio $240.6m) against $310.2m (FDI $522.8m and portfolio at negative $212.5m) in July-January 2008-09. It indicates that US investment in Pakistan declined by 33.5 percent and portfolio investment was up by 213 percent.
The Netherlands was the second largest investor with direct investment in Pakistan recorded at $179.6m and was 209.6 per cent more than corresponding period of the last year when it stood at $58m. Its portfolio investment declined to $0.9m against $9.6m in corresponding period of the last fiscal.
The United Kingdom direct investment in Pakistan was recorded at $119m last year it stood at $189.2m depicting a decline of 37 per cent over corresponding period. Its portfolio investment stood at $45.6m against negative 57.5m in corresponding period of the last fiscal.
The United Arab Emirates (UAE) direct investment in Pakistan stood at $221.8m, Singapore $50.5m, Switzerland $45m, Germany $37.4m, Australia $33.5m and Saudi Arabia FDI stood at $27.1m. Last year in the same period, these FDI inflows from these countries stood at $119.5m, $229.5m, $190.7m, $33.7m, $47.8m and negative half a million respectively.