ISLAMABAD, Dec 24: Foreign Direct investment (FDI) has recorded 58 per cent increase to $161.60 million in July-November 2001 against $102.40 million during the corresponding period last year.

“This shows that foreign investors have started reposing confidence in Pakistan and business-friendly policies of the government,” says an announcement of the Board of Investment (BoI), here on Monday. It expects that FDI flow during the current financial year will be around $500 million.

The quarterly report of the State Bank, however, says that events following September 11 have made the target of investment in 2001-2002 “unrealistic”.

The report also said that in terms of portfolio investment in securities, the impact of maturing 3-year Special US Bond from August 2001 has not been realized in the first quarter. Based on partial information received only from Lahore and Karachi offices of State Bank, people encashed only 10,000 Bond into US Dollar in September. As far encashments in October, the collapse of the kerb premium and appreciation of rupee/dollar parity, promoted many individuals to avail the option of redemption in rupee (which comes with 5 per cent redemption bonus) as compared to hard currency payment or re-investment.

The leading sectors, which attracted sizeable FDI during July- November this year are Oil & Gas ($63.7 million), power ($27.6 million), trade ($11.8 million), electronics ($9.1 million), transport ($7.9 million), and others ($41.5 million).

The major investing countries are the US ($90.9 million), the UK ($13.2 million), the UAE ($9.0 million), Switzerland ($5.3 million), Germany ($2.9 million) and others ($40.3 million).

The BOI is making extensive efforts for marketing the investment potential and opportunities of Pakistan to the foreign investors. It is expected that during the coming months the FDI inflow will further increase. During 2002, the BOI is planning to hold about 10 investment conferences in Middle East, the US, the European Union, China and Japan.

The BOI has chalked out an investment marketing plan and the opportunities will be fully taped, which are now arising as a result of lifting of the economic sanctions on Pakistan as the perception abroad was now fast changing.

The OPIC, US-Exim Bank, Hermes of Germany have announced full support for investment and trade with Pakistan. Furthermore, the BOI is launching a campaign to motivate overseas Pakistanis and to gear them up for strong timely and effective participation.