Country’s foreign investment falls 60.8pc in July

KARACHI: Foreign investment in Pakistan fell 60.8 percent in the first month of 2011/12 fiscal year (July-June) to $61.9 million, because of a decrease in foreign direct investment and foreign portfolio investment, State bank of Pakistan said on Monday.

Foreign investment totalled $157.8 million in July 2010.

Foreign direct investment fell 17.2 percent in July 2011 to $90.9 million from $109.8 million in the same period last year, the State Bank of Pakistan said.

With around 300 people killed in July because of violence in the country's main commercial hub, investors have become nervous and started shunning the country's main stock exchange.

Foreign portfolio investment fell 160.4 percent with outflows of $29 million in the first month of fiscal year 2011/12, compared with inflows of $48 million in the same period last year.

Pakistan has struggled with a troubled economy and an International Monetary Fund (IMF) emergency loan package agreed to in November 2008 that helped it avert a balance of payments crisis and shore up reserves.

It received the fifth tranche of $1.13 billion of the $11 billion loan in May 2010.

Copyright Reuters, 2011