ISLAMABAD, Jan 18: The foreign direct investment (FDI) increased by 164 per cent to $540 million during the first six months of 2002-03, compared to $205 million during the corresponding period of last fiscal.

During December 2002, the inflow of FDI was $78 million.

“This shows the improved investors confidence in Pakistan’s investment climate and continuity of the economic policies,” says an official announcement of the Board of Investment (BoI) here on Saturday.

The major sectors that attracted notable FDI during the period of July-Dec 2002 are: Financial businesses ($198 million), oil and gas ($95 million), chemical ($79 million), transport ($44 million), trade ($25 million), textile ($18 million), communication ($18 million) and power ($17 million).

The percentage share of major sectors in FDI inflows are: Financial businesses 37 per cent, oil and gas 18 per cent, chemical 15 per cent, transport 8 per cent, trade 5 per cent, textile 3 per cent and other sectors 15 per cent.

The United Arab Emirates (UAE) has taken the lead during this period by investing $175.4 million and the US is in second position with FDI of $132.1 million, while Britain being third with $108 million. The share of major investing countries in FDI comes to the UAE 33 per cent, the US 25 per cent, the UK 20 per cent, Saudi Arabia 4 per cent, Japan 2 per cent and 17 per cent from other countries.

The visits of foreign business delegations to Pakistan have increased during the last two months. Investors delegations from Europe, Bahrain, China and Singapore have visited Pakistan to explore Pakistan’s potential and have a meaningful interaction with the private sector.

The Singaporean investment and trade delegation concluded their visit on January 17, and has indicated their interest in information technology (IT), oil and gas, education and infrastructure projects, besides import of Pakistani products.

A positive development is that overseas Pakistanis remittances have reached the level of $2.15 billion in the first half of the current financial year, which is a record figure. “During fiscal 2002-03, it is expected that FDI inflows will cross $1 billion mark,” the announcement said.