ARSHAD HUSSAIN
The country’s total foreign investment surged by 36.6 per cent to $1.505 billion mainly supported by foreign public portfolio investment which improved by 151 per cent during July-Nov 2016-17.
However, the direct investment further declined by 45.2 per cent to $459.8 million only in July-Nov 2016-17. Out of this investment, the Chinese companies invested $156.5 million, the data released by the State Bank of Pakistan (SBP) said here on Thursday.
In the month of November this year, the country has received $143.7 million in the direct investment, while $87.2 million in total investment. The country recorded inflows of $226.4 million while outflows of $82.7 million in November 2016.
The figures of direct investment slide by 45.2 per cent to $459.8 million in last five month of the current fiscal year compared to $839.7 million received in the same period of 2015-16. The country received direct investment from China, UAE and USA, Turkey and Italy in oil and gas explorations, power, communication industry, and financial business.
The biggest investment of $156.5 million has been received from China in power sector and other China Pakistan Economic Corridor (CPEC) development projects, $126.3 million from Turkey, while $63.7 million from UAE and $60.5 million from the USA, the SBP said.
“The investment of $1.141 billion has been received through the Pakistan Stock Exchange (PSX) through foreign public investors in portfolio investment,” the analyst said. PSX had touched all time high level of 46,500 point level this week, he added.
Chinese companies are making investment in Pakistan especially in power sector under the CPEC projects. In last five months, more than $156.5 million were received through direct investment from China, which is a good sign for the country’s economy, the analyst claimed.
In the same period 2015-16, the Chinese companies invested $376 million. In July-Nov 2015-16, the foreign private investment of the country stood at $364 million, which were received in power sector and other financial services businesses.
The country’s total foreign direct investment increased by 36.6 percent to $1.505 billion in last five months of the current fiscal year only because of the investment in the power and financial businesses as per the agreement of the government, the analyst claimed. The country has received another big investment of $126 million from Turkey.
The foreign public investment also increased by 151 per cent to $1.141 million in July-Nov this year compare to only $454.7 million received in same period in 2015-16.
The country has recorded inflows of direct investment of $706.5 million in July-Nov 2016-17, but the outflows were recorded $246.7 million in the same period, the SBP data said.
The analysts believed that direct investment will improve with the passage of time. After touching the highest level of $24.6 billion, the forex reserves declined to $23.29 billion this week. The market had touch 46,500 points level in this week. While there is a positive trend in portfolio’s inflows because of MSCI up gradation of Pakistan’s stocks in emerging markets, another analyst claimed.
Saudi Arab was the major country who withdrew an amount of $53.4 million while Egypt was the second country who pulled back $20 million from Pakistan and Bahrain withdrew an amount of $19.5 million.