Foreign Direct Investment Goes Up 9.9% In 7 Months

Fahad Shabbir (@FahadShabbir) Published February 16, 2017 | 02:25 PM

ISLAMABAD, (UrduPoint / Pakistan Point News - 16th Feb, 2017 ) : Foreign Direct Investment (FDI) in the country increased by 9.9 per cent during first seven months (July-January) of current fiscal year as compared to same period of last year.

The FDI in to the country increased to $1.161 billion in the period under review as compared to $1.0566 billion during same period of the preceding year, according to latest data released by State Bank of Pakistan (SBP).

In January, 2017 the FDI also increased to $80.8 million from $78.1 million in January 2016. The overall foreign investment surged by 52.7 per cent to $1.83 billion in July-January 2016-17 compared to the total foreign investments in to the country of $1.1986 billion in first seven months of the year 2015-16.

The economists believe that the recent increase in FDI was the result of Chinese investment under China Pakistan Economic Corridor (CPEC) coupled with improved law and order situation in the country.

The Netherlands' agreement to purchase 49 per cent shares of Engro food also caused hike in investment to Pakistan. According to detail, the largest investment during the period under review came from the Netherlands who invested $456 million in the country's food sector.

Chinese investment in the country remained $243 million while Turkey's direct investment in Pakistan was recorded at $129.8 million during July-January 2016-17. Similarly, during the period under review, the FDI from U.A.E., Thailand, Singapore, Poland, Malaysia, Lebanon and Kuwait was recorded as $58.6 million, $5 million, $25.5 million, $4.4 million, 4.5 million, $5 million, 1.7 million respectively.

Japan invested $23.4 million, Italy $37.4 million, Hungary $22.7 million, Hongkong $65.3 million, Canada $18 million and Austria invested $18.4 million in Pakistan. Sector wise, the highest investment was made in country's food sector followed by power sector in which $245.3 million was invested.

Likewise in country's electronic sector, the FDI of $134.8 million was made while in oil and gas exploration, tobacco and cigarettes, textiles, chemicals and construction sectors the investment worth $92.9 million, $37.3 million, $25.8 million, $18.2 million and $119.6 million respectively was made.