ISLAMABAD: Investment-to-GDP ratio reached 15.21 per cent during the fiscal year 2015-16 as total investment touched the figure of Rs4,502 billion as compared to Rs4,256bn last year, showing a growth of 5.78pc.

According to Economic Survey 2015-16, fixed investment rose to Rs4,028bn as compared to Rs3,816bn last year, showing a growth of 5.57pc and fixed investment as percentage of GDP was recorded at 13.61 per cent.

Private investment recorded a growth of 3.71pc and private investment as percentage of GDP reached 9.79pc, whereas public investment grew by 10.63pc and as percentage of GDP it has increased from 3.72pc to 3.82pc.

“It is an indicator that government expenditure strategy is development oriented,” says the Economic Survey.

Public sector investment increased by Rs1,132bn during current fiscal year as compared to Rs1,023bn in 2015. Private investment expanded to Rs2,896bn this year as compared to Rs2,793 bn a year before. This increase in private investment is an indicator that investment climate is improving.

During July-April, net foreign direct investment crossed $1bn with a growth of 5.4pc. During July-April of this fiscal year, FDI inflows reached $1,762.3m, and in the same period outflows were registered at $747.0m.

The major FDI inflows were from China, US, UAE, Hong Kong, UK, Switzerland, Italy, Austria, Norway, Luxembourg, Saudi Arabia, Japan and Singapore.

Power, oil and gas exploration, financial business, tobacco, cigarettes, communications, beverages, chemicals, personal services, electronics, construction, petroleum refining and transport remained the main recipient sectors.

The survey concludes that all macroeconomic policies, including monetary, fiscal and trade, have been designed and coordinated to reinforce all sectors of economy and create incentives for domestic and external resource mobilisation on sustainable basis.

The completion of regional connectivity projects, like CPEC, CASA1000 and TAPI, will turn around the economic outlook of Pakistan and will prove to be a game-changer for the entire region, it says.

Published in Dawn, June 3rd, 2016