FDI improves modestly
The foreign direct investment in the real sector improved modestly by 4.7 percent in the seven month of financial year 2015-16 reaching $647 million mainly due to inflows from China, State Bank of Pakistan (SBP) data said.
This recorded the increase of $28 million from previous year. FDI is likely to touch $1 billion this year as new projects of different countries are being witnessed commencement with expansion in the existing one because of Chinese companies which invested $420 million in the said period. Investment in power sector was registered with $334 million inflows in the seven months of 2015-16. This sector is followed by oil and gas with investment of $178 million in the said period. Different countries invested in different sectors of Pakistan include UAE with $98 million; Hong Kong with $86 million and Italy with $61 million.
The FPI witnessed decline of 50 percent due to outflow of capital by foreign companies in tandem with bearish rule in global and regional market. FPI stood at $479 million in the 7MFY16 as against of $927 million registered in the same period of last financial year.
In January 2016, the stock market witnessed series of major sessions in which index fell substantial points. Overall, the net FDI is reflected a decline of 53 percent mainly due to outflow of investment in equity market.