FDI inches up to $710.1 million in July-March

KARACHI: Pakistan has received foreign direct investment (FDI) of $710.1 million in the first nine months of fiscal 2014-15, which is only 0.1 percent more than the FDI received during the same months of the preceding fiscal year, central bank data showed on Thursday.
However in March, FDI stood at $94.7 million compared to $69 million the country received in the corresponding month of the previous fiscal year.
Foreign portfolio investment also increased substantially by 182.5 percent in July-March period to $100.6 million as against the meager inflows of $35.6 million same period last year.
Total foreign investment flows saw a decent growth of 118.7 percent as it stood at $1.765 billion against $807.2 million last year.
According to the central bank’s figures, textiles, transport, oil and gas exploration, power and telecommunications and financial business sectors attracted foreign direct investment during July-March period.
Analysts said the country needs more overseas investment to support an economy mired by political uncertainty and militancy.
They said FDI flows are expected to remain stagnant as foreign investors are still reluctant to investment in Pakistan due to weakening security conditions and inadequate trade policies.
“The outlook for FDI does not seem very positive as the government’s reforms and policies to attract FDI remain weak on the whole” said Sakib Sherani, former government economic advisor CEO of macroeconomic insights.
Analysts viewed the country has fetched $810.7 million in foreign private investment due to privitisation of profitable banking and oil and gas exploration units in recent past.
The central bank data said $1.181 billion has been pulled out the country during July-March FY15 period.