Pakistan’s foreign investment drops

Islamabad: The State Bank of Pakistan’s latest data show that investors remained cautious in injecting foreign investment in Pakistan, which witnessed a fall of 58 percent in the first four months of current financial year (July 2011 to June 2012).

The Foreign Direct Investment (FDI) landed $340.2 million with a drop of 27.7 percent compared with the corresponding period of previous fiscal year. Foreign Portfolio Investment (FPI) decreased by 200.8 percent in July-October with an outflow of $102.1 million.

The net foreign investment inflow was recorded from developing economies, particularly those from the Middle East countries, whereas investment from developed countries shrank, reported Xinhua.

The FDI and FPI, respectively, recorded $198 million and $5.4 million from developing economies, mainly the UAE, Kuwait, and China.

The FDI and FPI from developed countries saw a steep drop in July-October, with FDI recorded at $36.4 million and FPI witnessed an outflow of $107 million.

The inflow of foreign investment in the country has continued to slow down for the past five years owing to uncertain political and law and order situation in the country. The power and gas load shedding have further worsened the business capacity to attract investment in the country.

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