Despite higher inflows of $409 million from China, the country’s foreign direct investment increased only by 4.6 percent to $647 million in last seven month of the current fiscal year 2015-16 while the total investment declined by 53 per cent to $815.8 million in the same period.
The investment from Chinese companies remained on the top with $409 million in July-January this year, while the outflows were recorded only $28.1 million, the central bank data said here on Tuesday.
The country has received only $200-$250 million from all over the world in last seven month if we minus total investment from China.
The overall foreign investment in the country stood at $815.8 million in last seven months, down by 53.6 percent. Last year in the same period, the total foreign investments were stood at $1.759 million.
The country has received inflows of direct investment of $1.176.8 million in July-January of the current fiscal year, but the outflows of $528.9 million were recorded in the same period. The direct investments were recorded at $647.9 million compared to $619.6 million in the same period last year.
During seven month of the current fiscal year, the country recorded portfolio investment (negative) $311.7 million which was (plus) $165.4 per cent in the same period last year.
From the public sector, the State Bank of Pakistan (SBP) received an amount of $479.5 million in this period down by 50.8 per cent compared to last year amount of $973.9 million. The SBP has received this amount in the head of portfolio investment only.
“The Chinese companies are supporting the country’s foreign direct investment, but on the other side the portfolio investment continuously declining because of the current law and order situation and standoff between federal and provincial governments,” the analyst said. On Tuesday, the Pakistan Stock Exchange (PSX) is down by 254.99 points in a day and trading at 31673.16 points. The local bourses had so far lost above 5000 points in last seven months.
“Because of the uncertainty in the country’s politics and trade, the foreign countries are still withdrawing their investment from the country,” the analyst further added.
In January 2016, the country has received total investment of (negative) $48.6 million compared to(plus) $24.4 million in the same period last year. Direct investment of the country was recorded $23.9 million against $9.2 million in the same month last year.
Only in January 2016, the SBP recorded portfolio outflows of $73.5 million against the inflows of $16.5 million in January last year.
After China’s $409 million investment, Hongkong’s investment remained on top with $94.3 million and Italy and United Arab Emirates invested $61.1 million and $98.5 million respectively.
Meanwhile the United States remained on the top, who withdrew an amount of $86.5 million, Saudi Arabia was on the second with outflows of $74.4 million and Germany withdrew $30.6 million from Pakistan.