The country’s foreign direct investment increased only by 4.8 percent to $751 million in last eight month of the current fiscal year 2015-16, while the total investment declined by 52.5 per cent to $885.2 million in the same period.
The investment from Chinese companies remained on the top with $436.4 million in July-Feb this year, while the outflows were recorded only $28.1 million, the central bank data said on Tuesday.
Despite higher inflows of $436.4 million from China, the country’s total investment stood at $885.2 million in last eight months. The country has received only $449.8 million from rest of the world in last eight month.
The overall foreign investment in the country stood at $885.2 million, down by 53.5 per cent this year. Last year in the same period, the total foreign investments were stood at $1.864 billion.
The country has received inflows of direct investment of $1.334 billion in July-Feb of the current fiscal year, but the outflows of $583.2 million were recorded in the same period.
During eight month of the current fiscal year, the country recorded portfolio investment (negative) $345.4 million which was (plus) $182.2 million in the same period last year.
From the public sector, the State Bank of Pakistan (SBP) received an amount of $479.7 million in this period down by 50.3 per cent compared to last year amount of $965.7 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 some fear from the Federal Investigation Agency (FIA) in the stock market,” said analyst at AKD Securities. He said law and order situation and standoff between federal and provincial governments is also a big reason of decline foreign investment in the country, he added.
“Political uncertainty in the country and trade, the foreign countries are withdrawing their investment from the Pakistani markets,” the analyst further added.
In February 2016, the country has received total investment of $69.4 million compared to $97.6 million in the same period last year. Direct investment of the country was recorded $103 million against $89.1 million in the same month last year.
Only in Feb 2016, the SBP recorded portfolio outflows of $33.7 million against the inflows of $16.7 million in February last year.