ISLAMABAD, Sept 13: Foreign direct investment (FDI) has doubled during the past three years, which is approaching $1 billion this year.

Dr Abdul Hafeez Shaikh, Minister for Privatization and Investment, stated this during a meeting with the visiting US delegation led by US Under Secretary of State Alan Larson, who called on him here on Monday.

The minister said that structural reforms were encouraging investors in all sectors as Pakistan was poised for a high growth and allowed free flow of capital.

According to a press release issued here by the Board of Investment, in a presentation to the delegation, the minister said that the consistency and continuity of economic, investment and privatization reform policies had started yielding results with stable exchange rate, 6.4 per cent GDP growth, best performing stock exchange in the region, while growth in the manufacturing sector was increasing to 15 per cent and the privatization process showing an increasing upward trend with Rs33 billion average per year as compared to the previous performance of Rs6 billion per year during the first decade of privatization and Rs12 billion per year during the first three years of the Musharraf government.

"Pakistan's liberal investment policy has provided a level-playing field for local and foreign investors with 100 per cent foreign equity and no restriction on remittances of profit and capital," he said.

Dr Hafeez said that currently 57 US companies' members of the American Business Council of Pakistan were operating in Pakistan with 37.7 per cent FDI from the US, which was expected to further increase through potential investment from US investors in oil and gas manufacturing and services, agriculture, pharmaceutical and communication sectors.

The participation by the US investors in the privatization programme was another effective way to enter Pakistani market through most transparent process. Alan Larson lauded the government efforts undertaken through economic reforms and started that Pakistan would be an emerging market tiger in the region.

He expressed keen interest in the privatization programme and assured US support in the transformation of economic reforms and promotion of investment in most of the sectors, including pharmaceutical, infrastructure and agriculture.

Waseem Haqqie, Chairman of the Board of Investment, informed the meeting that a bilateral investment treaty was being finalized between Pakistan and the US. Special Assistant John Duncan, Deputy Economic Counsellor Christian R. De Angelis and others also accompanied the delegation.