FDI im­proves mod­estly

The Pak Banker - - FRONT PAGE -

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.

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