Despite a $516 million Chinese investment, the country’s total investment declined by 69.7 per cent to $567.2 million in first nine months of the current fiscal year.
On the other hand, the country’s foreign direct investment increased slightly by 15.1 per cent or to $957.4 million in last nine months while private foreign investment also declined by 33.4 per cent to $611.1 million in the same period compared to $918.2 million received in the same period last year.
The investment from Chinese companies remained on top with $544.9 million in July-March this year, while the outflows were recorded at $28.1 million, the central bank data said on Monday. Chinese companies have invested $59.1 million in March this year.
The overall foreign investment in the country stood at $567.2 million, down by 69.7 per cent this year. Last year in the same period, the total foreign investments stood at $1.873 billion.
The country has received direct investment of $1.616 billion in July-Mar 2015-16, but outflow of $658.9 million was recorded in the same period.
During nine months of the current fiscal year, the country recorded portfolio investment (negative) $346.3 million which was (plus) $86 million in the same period last year.
From the public sector, the State Bank of Pakistan (SBP) recorded an outflow of an amount of $44 million in this period down by 104.6 per cent compared to last year amount of $954.5 million. The SBP has received this amount in the head of portfolio investment only.
“Direct investment is up 15 per cent, which is a good sign for the country,” said Saad Hashmi, analyst at Topline Brokerage house. There is a negative impact on our total investments only because of portfolio’s outflows, as during the period the foreign investors have withdrawn an amount of $346.3 million which is a big amount for the country, he added.
“It is an international phenomenon as the international stock markets are on the declining side owing to the outflows,” the analyst said.
“The foreigners are also withdrawing their amount because of raids of Federal Investigation Agency (FIA) on stock investors,” said an analyst at AKD Securities. He said the law and order situation and standoff between federal and provincial governments is also a major reason of decline in foreign investment in the country, he added.