KARACHI: The foreign direct investment (FDI) remained flat at $2.76 billion during 2017-18, showing a meagre increase of 0.8 per cent over the preceding fiscal year.

However, the share of Chinese investment ($1,585 million) increased to 57pc of the total inflows during the fiscal ended on June 30. The share of Chinese investment was 44pc of the total FDI in FY17. It indicated that inflows from other than China have declined in FY18.

Second largest FDI was received from Britain which was around $278m compared to $215m in FY17. Hong Kong, Malaysia and USA were other significant investors with $140m, $127m and $92m respectively.

The sector-wise information provided by the State Bank showed that the biggest attraction was power sector as the inflows reached $885m in FY18. In FY17, the inflow for the same sector was $700m.

Power sector and construction see largest inflows

Construction industry kept its strong growth intact during this year with an inflow of $707m much higher than $466m noted in FY17. The industry has been receiving massive foreign investments inflows for the last three years.

Oil and gas exploration attracted $194m during FY18 compared to $146m in FY17.

The food sector got a surprise with a sharp decline in the FDI. The inflows in this sector were $525m in FY17 while it reduced to just $105m in FY18. Last fiscal year saw a large investment food sector as Friesland Campina, a Dutch company, bought 51pc shares in Engro Foods for around $450m.

The financial sector also succeeded in attracting a significant investment of $276m compared to $296m in the FY17.

However, the telecom sector showed improvement compared to last year as the sector had witnessed net outflow of $91m in FY17. In FY18 the sector received $72m FDI.

The trade and transport sectors also showed improvement as they received $94m and $74m respectively; much better than previous year.

Published in Dawn, July 18th, 2018