ISLAMABAD, Jan 22: Foreign direct investment (FDI) has increased by around 39 per cent during first six months of the current fiscal year, notwithstanding a declining trend in imports, exports and revenue collection.
Foreign remittances amounting to $982.32 million in first six months also increased by 61 per cent when compared with $609.20 million during the same period last year.
These figures were released here on Tuesday by Commerce Minister Abdul Razak Dawood and chairman, Board of Investment (BOI) Waseem Haqui, but they refused to disclose figures of portfolio investment (indirect investment) despite repeated requests by the journalists.
“They (stock investors) come in very quickly and go out very quickly and does not really matter. That’s a totally different thing,” said Abdul Razak Dawood. He said that government had estimates of $470-500 million FDI by the close of this fiscal as FDI in January-June 2002 would range $270 million or so.
“Portfolio investment is regulated by the Securities and Exchange Commission of Pakistan (SECP) and has nothing to do with BOI,” said Waseem Haqui. Both the figures, foreign direct and portfolio, are compiled by the State Bank of Pakistan (SBP).
Razak said that world renowned chain Wal Mart would open its outlet in Karachi on February 1, 2002 as a formal permission to this effect has been granted by BOI on January 15. He said that Wal Mart was currently looking for a suitable place in Karachi.
He said that businessmen form the Oklahoma were also showing keen interest to invest in three areas: oil and gas, information technology and software and food products.
The figures suggest that FDI during July-December 2001-02 stood at $205 million against $147.1 million during the same period last year, registering an improvement of 39 per cent. It was for the first time in last three years the commerce minister and chairman BOI spoke jointly to the press on investment as FDI figures have improved.
Compared with this, exports in first six months stood at $4.45 million, down by 0.45 per cent while imports were $4.88 million, lower by 9.63 per cent when compared with the same period last year.
Revenue collection reduced by 4.1 per cent in first six months and stood at $174.5 million against $181.9 million last year.
The minister said that he was not satisfied with the performance of BOI as regards targets given to it though there was some degree of success. “I am not satisfied with the figures but I am satisfied with the trend” that at least FDI has started picking up.
The FDI amounted to $24.4 million, $26.5 million and $18.3 million in July, August and September 2001 respectively compared with $13 million, $26 million and $22.3 million in corresponding months of the previous year.
It, however, jumped to $50.4 million in October 2001 against $20.3 million corresponding month of 2000. In November 2001, the FDI dropped to 42 million against $46.8 million during the same month last fiscal. Similarly, in December 2001 investment was $43.5 million but remained lower than $44.7 million of December last fiscal year.
During July-December 2001-02, oil and gas sector on top of the list in attracting foreign direct investment as it was $78.1 million followed by power with $28.5 million, trade with $13.8 million, electronics with $11.8 million, financial business with $11.5 million, transport with $9.8 million, textiles with $6.6 million, communication with $6.2 million and construction with $5.8 million. Comparative figures of last fiscal year were, however, not disclosed.
On the country basis, investment form United States in first six months was $109.8, followed by $17 million from UK, $12.8 million from UAE, $5.4 million from Switzerland, $3.8 million from Germany, $3 million from Netherlands, $2.7 million from Japan, $2.6 million from Canada and $2 million from Singapore.