Foreign direct investment (FDI) dropped by 30 percent during eleven months (July-May) of current fiscal year, mainly due to lack of foreign investors' interest owing to adverse law and order situation. The State Bank of Pakistan on Tuesday said that FDI stood at $1.392 billion during eleven months of current fiscal year as compared to $1.98 billion of corresponding period of last fiscal year, depicting a decrease of $590 million.
However, another component of foreign investment-portfolio investment-posted an increase of 60 percent because of improvement in the country's equity market. The country's stock market fetched about $347.1 million portfolio investment during July-May period of fiscal year 2011 as compared to outflow of $133.7 million in the same period.
Similarly, net foreign investment, comprising foreign direct investment and portfolio investment, narrowed down by 5.8 percent during eleven months of fiscal year 2010-11. With the current decline, net inflows of foreign investment in Pakistan decreased to $1.739 billion in July-May of current fiscal year as compared to $1.847 billion in corresponding period of last fiscal year, depicting a decline of $108 million.
-- Total foreign private investment with privatisation posted a decline of 30 percent, to $1.76 billion, during the period under review as against $2.804 billion in corresponding period of fiscal year 2010.
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