ISLAMABAD, July 21: The foreign direct investment (FDI) inflow stood at $ 949.4 million, falling more than $50 million short of $1 billion target set for the fiscal year 2003- 04.

The FDI last year was, however, 19 per cent higher than $798m of the fiscal year 2002-03. The net foreign investment during the last fiscal year remained $921.7m, which had also shown an increase of 11 per cent when compared with $820m of the 2002-03.

The net foreign investment during the last fiscal year was $921.7m after negative portfolio investment (capital flight) of $27.7m. In 2002-03 the portfolio investment was negative by $22.1m.

The FDI has reached $949.4m mainly because of financial business that primarily included privatization of Habib Bank Limited to Aga Khan Foundation for Economic Development. The financial business attracted a total of $242.1m including $191m the government received under the head of privatization of Habib Bank Limited.

It was followed by communication sector at $221.9m in which telecommunication attracted $207.1m mainly due to the licences awarded for two new cellular telephone companies.

The other major sectors which attracted sizable FDI during 2003-04, are oil and gas explorations that attracted $202.4m, petroleum refining $70.9m, trade $35.6m, textile $35.4m, and construction $32m.

The US has emerged as largest investment contributing country with a total investment of $259.8m including $238.4m direct and $21.4m portfolio investment. This was followed by the Switzerland with total investment of $211.3 million, including $205.3 million direct and $6 million portfolio investment.

The UAE with an investment of $146.5m trails at third place with $134.6m of direct investment and $11.9 million portfolio investment. The United Kingdom follows with a total investment of $41.9 million with a break-up of $64.9 million under the head of direct investment and negative portfolio investment of $23 million.