KARACHI: Despite the downward trend in Direct Investment, the country’s total foreign investment enhanced by 124.8 per cent to $113.9 million owing to the higher inflows of portfolio investments in July 2016, the data released by the State Bank of Pakistan (SBP) said here on Tuesday.
The direct investment slightly down by 14.6 per cent to $63.3 million in first month of the current fiscal year compared to $75.3 million received in July 2015. The direct investment was supported by Oil & Gas Explorations, Power and Communication industry with a total contribution of $28 million in 2016-17.
The biggest investment has been received of $20 million in communication $8.6 million in Hydel Power sector, the SBP said. The SBP has also received an amount of $10 million in Financial Business. According to SBP, the Investments have also been received in textile, chemicals, transport and other sector.
An analyst said, “the Chinese companies are still pouring investment in Pakistan in Power Sector, while the government has also received some amount in communication last month.”
Last year, the Chinese companies have invested $628 million in power sector, meanwhile $265.7 million received in Oil & Gas Exploration sector and $300 million in communication industry.
The country’s total foreign direct investment increased by 61.8 percent or to $114.6 million during the month only because of the investment in the power and communication sectors, the analyst claimed.
The foreign public investment also declined by 96.2 per cent to negative $0.8 million in July this year compare to negative $20.2 million received in July 2015.
The country has recorded inflows of direct investment of $93.2 million in July 2016, but the outflows were stood at $28.9 million in the same period last year.
During 12 months of the current fiscal year, the country recorded portfolio investment of $50.3 million which was negative $4.5 million in previous year.
It’s a good sign that direct investment is $64 million in the first month, while there is a positive trend in portfolio’s inflows because of MSCI up gradation of Pakistan’s stocks in emerging markets, another analyst claimed.