Wednesday, June 17, 2009
KARACHI: Net foreign investment has declined by 47 percent during the first 11 months of the current fiscal year mainly due to massive outflow of the portfolio investment and poor law and order situation. Net foreign investment comprising foreign direct investment (FDI) and portfolio investment is constantly on the decline due to worsening law and order situation, slow economic activities and global recession.
Net foreign investment has registered a decline of some 2.01 billion dollars during the first 11 months (July-May) of FY09. With current decline, overall net foreign investment has declined to 2.222 billion dollars during July-May of the current fiscal year as compared to 4.23 billion dollars in the same period of FY08.
Massive outflows of portfolio investment have major share in the overall decline in the net foreign investment, while slow privatisation process has also contributed to this trend in a negative way, as during the current fiscal year no new privatisation transaction could take effect.
FDI and portfolio investment have posted a decline of 19.8 percent and 1365 percent respectively during the first 11 months of current fiscal year. FDI reduced to 3.325 billion dollars in July-May of FY09 against 4.147 billion dollars in the corresponding period of FY08, depicting a decrease of 815 million dollars.
With a dip of 1365 percent, portfolio investment stood in a negative position of 1.103 billion dollars during the first 11 months of FY09 as compared to an investment of 87.2 million dollars in the same period of FY08. However, economists said that some 3.325 billion dollars foreign direct investment during the first 11 months is also an encouraging figure despite uncertainty in the country.
They said that FDI inflows are more than expectations, which is a positive sign and it means that foreign investors are still interested in investing in the Pakistan. Inclusive of privatisation proceeds, total private investment shows a decline of 34.20 percent to 2.764 billion dollars during July-May of FY09. Previously it stood at 4.2 billion dollars.
(BRecorder)
KARACHI: Net foreign investment has declined by 47 percent during the first 11 months of the current fiscal year mainly due to massive outflow of the portfolio investment and poor law and order situation. Net foreign investment comprising foreign direct investment (FDI) and portfolio investment is constantly on the decline due to worsening law and order situation, slow economic activities and global recession.
Net foreign investment has registered a decline of some 2.01 billion dollars during the first 11 months (July-May) of FY09. With current decline, overall net foreign investment has declined to 2.222 billion dollars during July-May of the current fiscal year as compared to 4.23 billion dollars in the same period of FY08.
Massive outflows of portfolio investment have major share in the overall decline in the net foreign investment, while slow privatisation process has also contributed to this trend in a negative way, as during the current fiscal year no new privatisation transaction could take effect.
FDI and portfolio investment have posted a decline of 19.8 percent and 1365 percent respectively during the first 11 months of current fiscal year. FDI reduced to 3.325 billion dollars in July-May of FY09 against 4.147 billion dollars in the corresponding period of FY08, depicting a decrease of 815 million dollars.
With a dip of 1365 percent, portfolio investment stood in a negative position of 1.103 billion dollars during the first 11 months of FY09 as compared to an investment of 87.2 million dollars in the same period of FY08. However, economists said that some 3.325 billion dollars foreign direct investment during the first 11 months is also an encouraging figure despite uncertainty in the country.
They said that FDI inflows are more than expectations, which is a positive sign and it means that foreign investors are still interested in investing in the Pakistan. Inclusive of privatisation proceeds, total private investment shows a decline of 34.20 percent to 2.764 billion dollars during July-May of FY09. Previously it stood at 4.2 billion dollars.
(BRecorder)
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