KARACHI, June 24: Pakistan received about $903 million foreign direct investment or FDI in eleven months to May 2004, up $158 million or 21 per cent, from $745 million it had secured in a year-ago period.

Statistics released by the State Bank shows that the largest chunk of FDI, nearly $216 million, came from the United States. The second largest share in the FDI was that of Switzerland-$205 million. In a year-ago period, the US and Switzerland had made $186 million and just $2.8 million FDI in Pakistan respectively.

Whereas higher foreign direct investment from the US shows only continuation of the past trend, Pakistan managed to attract an unusually large investment from Switzerland through sale of 51 per cent shares of Habib Bank Ltd. The Aga Khan Fund for Economic Development that has purchased the HBL shares is based in Geneva.

The United Arab Emirates also made about $127 million foreign investment in Pakistan between July-May 2003-04, which is slightly higher than a year-ago investment of $115.5 million.

FDI from the UAE has gone up primarily because the UAE-based Warid Telecom made the first payment of $72.75 million in May for the grant of cellular mobile phone licence by Pakistan Telecommunication Authority.

Unlike the US and the UAE, foreign investment from the UK fell drastically in eleven months to May 2004 to $58 million from $213 million in a year-ago period. The following countries also made nominal foreign investment in Pakistan between July 2003 and May 2004: Germany ($6.1), Hong Kong ($5.9m), Japan ($14.2m), Saudi Arabia ($6.6m), Netherlands ($12.5m) China ($13.8m), Italy ($0.2m), Canada ($0.4m), Korea ($0.9m), Singapore ($3.9m) and Australia ($1.5m).

France did not make any foreign investment: it rather withdrew $5.4 million of foreign investment from Pakistan in eleven months to May 2004. All other countries, whose names are not mentioned here, made a cumulative foreign investment of $236 million, even higher than the investment made by the US.

Data on sector-wise flow of FDI released by the Board of Investment shows financial business attracted the highest investment of $244.8 million followed by communication ($219.7 million) and oil and gas (188.5m).

Petroleum refining sector attracted $65.5 million followed by textiles ($32.9m) and trade ($30.5 million). All other unidentified sectors attracted $120.9 million foreign direct investment in Pakistan in eleven months to May 2004.