- Country recorded an influx in net FDI of $ 25.7 million in March.
- SBP data show that the majority of direct investments came from China.
- The increase in the IED is motivated by strong entrances to financial services.
Karachi: Pakistan received $ 1.644 billion in direct foreign net investment in the first nine months of the current financial year, marking an increase of 14% compared to the same period last year, The news Reported Friday citing data from the central bank.
However, the FDI experienced a sharp drop on a monthly basis over the month (MOM). In March, the country recorded an influx in net FDI of $ 25.7 million, compared to $ 294.2 million in the same month last year.
Data from the State Bank of Pakistan (SBP) indicate that the majority of direct investments came from China, because the IED of Chinese companies increased to $ 684.5 million in July-Mars exercise 2013, against $ 330.3 million a year ago. Hong Kong investments also increased to $ 175.9 million in July-Mars 2010, against $ 153.8 million during the same period last year.
The increase in the IED is driven by strong entrances to financial services, which have reached $ 518.4 million during the nine months of this financial year. This compared to $ 464.8 million in FY4. The electricity sector attracted $ 500 million in FDI, compared to $ 342.5 million last year.
According to analysts, the increase in foreign investments demonstrates increased confidence in investors, which is fueled by economic stability and the progress of the reforms of the International Monetary Fund (IMF).
However, it is essential to establish coherence in terms of policy and governance. Investors are looking for frequent stability and regulatory changes or political disturbances affect confidence.