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The Foreign Direct Investment inflows in Pakistan have declined considerably after 2008 from $5.590 billion to $2.016 billion in 2010, reveals World Investment Report 2011 released by United Nations Conference on Trade and Development. According to the report, the total FDI inflows in the economy declined from 5.590 billion dollars in 2007 to 5.438 billion dollars in 2008 and 2.338 billion dollars in 2009.
The FDI inflows further declined to 2.016 billion dollars in 2010. However, the total FDI stock in the country increased from 6.919 billion dollars in 2000 to 21.494 billion dollars in 2010 because of opening up and investment by foreign companies in telecom sector.
The FDI stock in India went up from 16.339 billion dollars in 2000 to 197.939 billion dollars by 2010 while FDI stock in Sri Lanka grew from 1.596 billion dollars in 2000 to 5.008 billion dollars in 2010. Analysis of the data showed the FDI stock in Bangladesh increased from 2.162 billion dollars in 2000 to 6.072 billion dollars in 2010.
The total cross border merger and acquisition in Pakistan during January-May 2011 stood at Rs 247 million dollars. The report reveals that Pakistan has not emerged in cross border merger and acquisition deals worth 3 billion dollars completed during 2010 whereas India twice emerged for striking over 3 billion dollars merger and acquisition deals in pharmaceutical preparation and telecommunication.

Copyright Business Recorder, 2011

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