.
FDI soars 72pc in nine months
By M Israr Khan
ISLAMABAD: Foreign Direct Investment (FDI) to Pakistan during the first nine months of the current fiscal soared by 72.1 per cent year-on-year to $3.859 billion and portfolio investment by 152 percent to 1.027 billion dollars, the central bank reported on Monday. During July-March 2006-07, FDI in absolute terms increased by 1.616 billion and portfolio investment by $619.4 million over corresponding period of last fiscal when these stood at $2.243 billion and $407.4 million respectively. Therefore, on balance, the total foreign private investment in nine months increased by 84.4 percent to $4.886 billion from $2.650 billion in corresponding period of the last fiscal.
It is pertinent to note that during 2005-06, total investment inflow had crossed $3.872 billion mark as against $1.676 billion in 2004-05. Moreover, for the current fiscal, there was hope of further improvement in foreign investment, especially with better macro-economic indicators and improvement in infrastructure. A significant feature of the data was that though FDI inflow followed steep path right from the beginning of the new fiscal and increased enormously, portfolio investment was fluctuating from the beginning of the fiscal. However, during the period under review it showed a sizeable growth.
According to a breakdown of investment by region, developed countries made a total investment of $3.01 billion including FDI $2.158 billion and portfolio investment of $851.8 million. The developing economies invested $1.573 billion (FDI $1.399 billion and $173 million portfolio investment). Among developed countries, Western Europe made a total investment (FDI and portfolio) of $880.4 million and European Union, $1.56 billion against $615.9 million and $245.4 million, respectively, in corresponding period of last fiscal. Besides, under unspecified head (investment by IFIs and other n.s.e) was $303.2 million. This includes FDI of $301.3 million and two million dollars portfolio investment.
Among developing economies, Caribbean Islands invested $16.1 million FDI and $1.2 million portfolio investment during the period under review. Africa, including Libya, Egypt, Mauritius, South Africa and other African countries invested $73.6 million. Asian countries (West Asia, South, East and South East Asia) made total investment of $1.479 billion, including $1.316 billion FDI and $163.3 million portfolio investment. The breakdown of investment figures indicated that United States (US) was the biggest investor in Pakistan by investing $1.241 billion, including $635.8 million FDI and $604.9 million portfolio investment.
United Kingdom (UK) was next with total investment of $1.019 billion, including FDI of $693.6 million and portfolio investment of 326.3 million dollar. China was the third largest, whose direct investment was $708.4 million while zero portfolio investment. The Netherlands invested $501 million (FDI 497.7 million, $3.2 million portfolio). The United Arab Emirates (UAE) also invested $362.3 million as it injected $343 million FDI and $19.1 million portfolio investment in the economy.
link http://www.thenews.com.pk/daily_detail.asp?id=52621
.