KARACHI, May 19: Pakistan received $760.4 million foreign direct investment or FDI in ten months to April 2004 up from about $696 million in a year-ago period. The largest chunk of $201.9 million came from Switzerland. Normally FDI inflows from Switzerland do not reach this level.

But in the first quarter of this year Geneva-based Aga Khan Fund for Economic Development bought 51 per cent shares of Habib Bank Ltd and made payment for 26 per cent shares to take over the bank management. The Fund paid more than $182 million for 26 per cent shares of the bank in first instalments.

The government has sold 51 per cent HBL shares to the Fund for a total sum of Rs22.4 billion. It will pay for the remaining 25 per cent shares within next two years. The latest data released by the State Bank shows that the US made the second largest investment of $191.7 million between July 2003 and April 2004. The UK and the UAE also invested $84 million and $76.7 million respectively.

Other countries made smaller investments. Area-wise break-up of FDI upto April this year would be out sometime next month. The latest data released by the Board of Investment relates to July-March 2003 period.

The data shows that financial business attracted $243.9 million__a reflection of HBL privatization__followed by mining/ quarrying and oil exploration $152 million and petrochemicals& refining $55.1 million.

Following other areas received much smaller amounts of FDI: Power sector ($14.9m); Chemicals/pharmaceuticals& fertilizers ($21.3m); Construction ($20.7m); Food/beverages & tobacco ($3.9m); Textiles ($26.5m); Transport/storage/communication & Information Technology ($19.5m); Machinery other than electronics ($0.6m); Electronics ($4.8m); Electric Machinery ($6.7m); Trade ($22.4m); Tourism/Paper & pulp ($1.6m); Cement/sugar ($1.8m) and other areas not specified individually ($36.6m).

Industry sources say that $26.5 million foreign investment in the textile sector in the first nine months of this fiscal year reflects the textile sector's preparedness to survive in the quota-free regime after 2004.