Daily Times

KARACHI: The Foreign Direct Investment (FDI) witnessed a decline of 38.2 percent during first quarter of the current fiscal year.

The FDI shrank by 38.2 percent to $249.3 million during first quarter (July-September) as compared to $403.3 million during the last FY2015-16, showing a decrease of $154 million.

According to the FDI figures released by the State Bank of Pakistan (SBP) on Monday, the government’s policies failed to attract foreign investment into the country as neighbouring countries received billions of dollars in the same head.

The country’s new financial year started with a negative note as the inflows shrank by 48.4 percent to $344.7 million from $667.5 million as compared to the last fiscal data of same period (July-August 2015-16), showing a reduction of $322.9 million. The outflows reduced by 63.9 percent to $95.3 million from $264.2 million during July-September 2016-17.

The portfolio investment has registered an increase of 130.5 percent to $28 million during July-September from minus 91.5 percent, registering an increase of $119.5 percent.

Foreign private investment also registered a decrease of 11.1 percent to $277.3 million during July-September 2016-17 from $311.8 million as compared to same period of the last year.

Overall, the country received $249.3 million FDI from different countries. Of these, $90.8 million were received from China as the single largest contributor followed by United States $58.8 million, UAE $38.1 million, United Kingdom $21.5 million, Norway $20 million and Italy $14.7 million, respectively.

Top area for foreign investors was power sector that received $61.7 million followed by oil and gas sector $37.8 million, tobacco and cigarettes $27.3 million, communication sector $24.2 million, pharmaceutical and OTC products $9.1 million, trade sector $8.5 million, chemical sector 8.4 million and textile sector 6.3 million during the first quarter of the current fiscal year.