KARACHI, Oct 28: While the global financial system is facing a worst scenario since the great depression of 1929, Pakistan’s traditionally attractive sectors maintained their charm during the last troubled three months.

Oil and gas exploration, petroleum refining, power, telecommunications and most importantly financial business attracted foreign direct investment to push the first quarterly (July-Sept) FDI over nine per cent higher than the same period last year.

Financial business attracted the highest investment of $295.5 million, an increase of 68 per cent compared to the first quarter of last fiscal.

Financial business (banking and finance) is the main target of current turmoil in the financial system of developed economies of which the economists are predicting a complete meltdown and discussing finding a new financial system.

The situation is encouraging for Pakistan as banking system is still intact and the Governor, State Bank of Pakistan, announced last week that country’s financials system escaped unhurt.

The mammoth growth of telecommunications which attracted huge foreign investment, continued to prove its potential for growth and a total inflow during the said quarter attracted $259 million, though it was 29 per cent less than three months of last year.

Oil and gas exploration sector’s performance was morale boosting for the country facing severe shortage of foreign exchange and fearing that it will have to embrace IMF.

The sector during the quarter attracted $190.7 million, 43 per cent higher than the same period of last year.

With slight fluctuation of investment, the FDI is on the same pattern and could provide up to $4.5 to $5 billion till the end of the fiscal year 2008-09 as it gathered a total of $1.110 billion during this period.

“The oil prices are just 44 per cent of what it was six months before which means the country’s oil bill could drop to $4.5 to $5.5 billion against over $12 billion of last year,” said Abid Saleem , an analysts, adding that it would provide enough space to adjust the balance sheet with a big slash in current account deficit.

He also pointed out that commodity prices have started falling in the global market like the edible prices which fell to 35 per cent of what it was during the 10 months till September.

Further, Pakistan is expected to produce enough wheat this year, thus there would be no requirement to import the commodity.

Analysts believe that things are improving for Pakistan even on external front but it depends on the perception of economic managers which shape of economy they would like to craft.