ISLAMABAD, April 19: The net foreign investment to Pakistan has dropped by 12 per cent to $586.8 million during nine months (July-March) of the current fiscal year compared with $664.7 million of the same period last year, revealed SBP figures.

The portfolio investment of $45.4 million flew out of Pakistan in nine months despite new records made by the stock market. Last year, Pakistan had attracted $6.5 million portfolio investment in nine months.

The foreign direct investment (FDI) in nine months of the current fiscal year stood at $632.3 million against $658.2 million of the corresponding period last year, registering a reduction of about 4 per cent.

On sectoral basis, oil and gas exploration was on top to attract foreign investment with $151.3 million, if the $244 million HBL- transaction is excluded from the investment attracted during the period under review. The oil and gas sector attracted 11 per cent higher investment compared with $136 million of the nine months of the last year.

Other than petroleum, investment in almost all the major and productive sectors came down during first nine months of the current fiscal year. Foreign investment dropped by about 50 per cent to $14.9 million in the power sector against last year's $28.1 million.

Interestingly, investment in thermal sector increased by 16 per cent while that of hydel sector reduced by 70 per cent despite the government policy to encourage hydel and discourage thermal power.

Investment in the communications sector reduced by more than 34 per cent to $13.6 million against $20.6 million of the nine months of last year while there was no investment in tourism and storage facilities this year.

Foreign investment in trade sector also dropped by more than 30 per cent to $22.4 million in nine months compared with $32.1 million of the same period last year. Foreign investment in transport sector also dropped by a mammoth 91 per cent to $5.9 million against $66.2 million of the same period last year.

Similarly, investment in chemical sector also reduced by about 84 per cent to $13 million against $80.4 million of the corresponding period last year. Investment in food dropped by 33 per cent, beverages 60 per cent, sugar 50 per cent, leather and its products by 33 per cent, mining and quarrying by 42 per cent, electrical machinery by 25.5 per cent and cosmetics by 100 per cent.

On the positive side, the investment in petroleum refining made a quantum jump to $54.2 million during the first three quarters of the current fiscal against a meagre $2.1 million the same period last year.

Foreign investment in textiles also increased by 15 per cent to $26.5 million against $23.1 million last year. The FDI from the United States increased by 5.5 per cent to $172.3 million against $163.5 million of the corresponding period last year.

The FDI from the United Kingdom declined by a mammoth 65 per cent to $75.7 million against $202.7 million of the same period last year. The FDI from the UAE, which is Pakistan's third largest investment partners after the US and the UK, also reduced by 52 per cent to $54.1 million against $112.7 million of the corresponding period last year.

Similarly, the FDI form Saudi Arabia came down by more than 90 per cent to $3.2 million compared with $32.6 million of the same period last year. Investment from other countries also dropped to $77 million against last year's $114.5 million. FDI from France, Hong Kong, Japan, Canada, and Australia reduced during the year.

On the other hand, Switzerland emerged as the largest investment contributor with $201.7 million investment during the first nine months of the current year, up by about 200 times, than $2.3 million of the same period last year. FDI from China also improved from $1.1 million last year to $11.1 million. FDI from Germany, the Netherlands and Korea also increased.