KARACHI: The foreign direct investment (FDI) fell to negative $7 million in May compared to $612m in the same month last year, while the foreign private investments (FPI) were just $35m against $671m a year ago, said the State Bank of Pakistan (SBP) on Tuesday.

The month proved to be hard, as both the FDI and FPI fell sharply to negative or negligible.

The government, for the last two years, has been expressing hopes of huge foreign investment in the country, particularly from China. However, the data indicates that so far it has failed to mobilise foreign investors.

Analysts believe that the country lacks policy to attract foreign investors, who are said to be reluctant for a variety of reasons.

The details revealed that the FDI during July-May 2014-15 fell to $803m, almost half of $1,509m in the same period last year. The FPI also slipped to $1,685m compared to $1,721m in the same period last year.

The only improvement was noticed in the portfolio investment which surged to $881m compared to $212m during July-May 2013-14.

The government, which presented its third budget recently, has been making tall claims about the economic growth and foreign investments, but it appears that it is leaning on Chinese investment for fast-paced development.

Published in Dawn, June 17th, 2015

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