KARACHI: The Foreign Direct Investment (FDI) narrowed down by 24 percent during the first four months of current fiscal year 2012-13 (FY13).

The FDI is on decline for the last few years and the trend continues during this fiscal year, despite the government policy, which allows foreign investors to repatriate 100 percent profit and dividend gain on their investment in Pakistan.

Analysts said bad law & order situation and poor infrastructure followed by rising energy shortfall are major hurdles in foreign investment and without solving these issues Pakistan can not attract foreign investment.

The State Bank of Pakistan on Thursday revealed that foreign private investment, comprising foreign direct investment and portfolio investment, moved up by some 50 percent during the July-Oct of FY13.

Inflows of foreign private investment in Pakistan surged to $370.8 million in July-Oct of FY13 compared with $247.8 million in corresponding period of last fiscal year, depicting an increase of $123.1 million.

During the period under review, portfolio investment witnessed upward trend while FDI continues to decline.

The FDI fell to $244.4 million during July-Oct of FY13 compared with $322.7 million in the corresponding period of last fiscal year, depicting a decrease of 24.2 percent or $ 78.2 million.

During the period under review, FDI’s overall inflows stood at $638.5 million against outflows of $394.1 million, resulting in a direct investment that stood at 244.4 million in first four months of FY13.

However, the second component of foreign private investment ie portfolio investment has posted a positive trend attracting  $126.4 million new investment in first four months of current fiscal year against $74.9 million outflow in the same period of last fiscal year.