Total investment declined 65.6% to $952.4m during the year
The direct investment of the country increased by 38.8 per cent to $1.281 billion mainly supported by oil and gas explorations, power, communications and beverages sectors with total contribution of $1.1 billion during the year (July-June, 2015-16).
Chinese companies invested an amount of $593.9 million during the year. The country’s total investment has declined by 65.6 per cent to $952.4 million during the last fiscal year.
The biggest investment has been of $290.4 million in the coal power sector. Moreover, $200 million have been invested in thermal and $137.5 million in hydel power sector. The country has also received $24 million of the privatisation proceeds in the thermal power sector, the SBP said.
An analyst said, “Only Chinese companies are pouring investment in Pakistan in the power sector. Investment in industries, chemicals and other sectors has declined in last fiscal year. According to the SBP’s investment figures, the Chinese companies have so far invested $628 million in the power sector. Meanwhile, $265.7 million were received in the oil and gas exploration sector while another $300 million were added to the communications industry.
The country’s foreign direct investment increased by 38.8 per cent last year only because of the Chinese investment in the power and communication sectors, the analyst claimed.
The foreign private investment also declined by 47.8 per cent to $961.4 million during the year compared to $1.84 billion received during the previous year.
If you exclude China’s investment, the country received only $687 million as foreign investment during the year.
The country has recorded inflows of direct investment of $2.1 billion in July-June 2015-16, while the outflows stood at $819 million during the same period last year.
During 12 months of the current fiscal year, the country recorded portfolio investment (negative) $319.7 million which was (plus) $917.3 million in the previous year.
In June 2016, the country recorded total investment inflows of $269.3 million compared to negative $31.9 million during the same month last year. Direct investment of the country was recorded $197.5 million against negative $57.7 million during the same month last year.
The SBP data said that the chemical sector fetched $64.6 million, petroleum and refining $38.1 million while transport equipments brought in $35.6 million.
The petro chemical and metal products were the top sectors that withdrew an amount of $136.1 million and $48.9 million respectively.
After China, United Arab Emirates (UAE) was the largest investor in the country, which invested $164.2 million, Hongkong was third with an inflow of $130.9 million while Switzerland invested $76 million in the country.
Saudi Arabia was the top country to withdraw its investment from Pakistan. It withdrew an amount of $102 million from the country. The US was second as it withdrew an amount of $65.5 million. Egypt also pulled back $45.6 million from the country.
