Foreign investment in Pakistan fell 60.8 percent in the first month of 2011/12 fiscal year (July-June) to $61.9 million, because of a decrease in foreign direct investment and foreign portfolio investment, the central bank said on Monday. Foreign investment totalled $157.8 million in July 2010.
Foreign direct investment fell 17.2 percent in July 2011 to $90.9 million from $109.8 million in the same period last year, the State Bank of Pakistan said. Pakistan’s unstable security, a Taliban insurgency in the country’s northwest and chronic power shortages have put off long-term investors, analysts say.
With around 300 people killed in July because of violence in the country’s main commercial hub, investors have become nervous and started shunning the country’s main stock exchange. Foreign portfolio investment fell 160.4 percent with outflows of $29 million in the first month of fiscal year 2011/12, compared with inflows of $48 million in the same period last year.