ISLAMABAD, Nov 26: The inflow of foreign direct investment during the period July-October 2004 reached $275.3 million as compared to $170.3 million during the same period last year, recording an increase of 62 per cent.

According to a press release issued here by the Board of Investment, major sectors that attracted notable FDI during the period under review are oil and gas ($53.6 million), communication ($53.6 million), power ($25.3 million), chemicals ($24.1), textiles ($12.9 million), automobiles ($93.3 million) and others ($93.3 million).

The United States has taken the lead by investing $79.5 million followed by the UK with FDI of $62.7 million. The shares of other major investing countries in the FDI inflows are: the Netherlands 19.8 per cent; Switzerland 7.9 per cent; Saudi Arabia 5.4 per cent; and others 83.7 per cent.

The substantial increase in the FDI inflow is an indicator that perception about investment climate in Pakistan is improving. Meanwhile, Umar Ahmad Ghumman, Minister of State for Privatization and Investment, before leaving for Latin America and Europe with President Musharraf said the interaction of Pakistani businessmen with Latin American and Canadian companies would lead to further increase in the inflow of foreign direct investment and transfer of technology to Pakistan.

Some of the leading Latin American and Canadian companies, including Giffels Inc, Canada, Info Span Inc, US, and Brazilian Power Company, are likely to sign MoUs/LoIs with Pakistani businessmen accompanying President Musharraf and with a Canadian-Pakistani group for investment in the field of housing construction, power, and IT/call centres.

Mr Ghumman, who hails from the corporate sector, has close links with big business entrepreneurs in the US and Canada. He disclosed that former US Senator David Tews, who is also Director of North America Liability Group, and Marcelo R. Bonorino, Vice-President of VESPERS Financial Group of the US, would help facilitate meetings of Pakistani businessmen with their counterparts in the US and Brazil.

Mr Ghumman will also hold a meeting on December 10 at the Pakistan Embassy, Washington, with six honorary investment counsellors working in the US and Canada.