Daily Times

KARACHI: China remained the biggest foreign investor in Pakistan with total investment of $1,240.3 million made during the outgoing fiscal year,FY17, thanks to the China Pakistan Economic Corridor CPEC.

The contribution of China in Foreign Direct Investment FDI increased the overall volume of investment by $2,410.9 million or 4.6 percent during July-June 2017 period as compared to the same period of last fiscal year. The total investment including portfolio investment increased by 9.1 percent to $2,157.2 million as compared to the $1,976.8.0 million of the previous year, FY16.

According to the data released by State Bank of Pakistan data, the Netherlands remained the second largest investor with net investment of $463.4 million.

Turkey stood in the third row among the investors with $135.5 million investment made in Pakistan during the fiscal year FY17 while United States invested $136.9 million and France invested $119 million. United Arab Emirates, United Kingdom and Saudi Arabia invested $57.1 million, $ 80.4 million and $ 1.9 million, $52.3 million respectively. During the fiscal year under review total outflows of around $402.8 million were recorded as compared to $859.9 million recorded previous year, SBP data shows.

However, the portfolio investment suffered by 66 percent to $530.9 million during the period under review.

The total foreign private investment also suffered by 5.3 percent as it was recorded at $1880 million against $1985.6 million of last fiscal year,FY16.

The foreign investment in Pakistan remained subdued due to many reasons including the law and order situation of the country in the backdrop of incidents of terrorism. However, with the launch of operation against elements involved in terrorism the security environment of the country has improved which reflects the increasing FDI trend.

A recent OICCI security survey shows that the foreign investors are now satisfied with the improved law and order situation of Pakistan and they now prefer to visit Pakistan without any fear to hold business meetings.

Published in Daily Times, July 18^th , 2017.