ISLAMABAD, Jan 24: The flow of Foreign Direct Investment in July-December 2004 reached $445 million as compared to $ 277 million during the corresponding period last year, registering 61 per cent growth.

According to a press release issued by BoI on Monday, the substantial increase in the FDI can be attributed to the good governance, improvement in policies and Pakistan's image abroad.

The major sectors which attracted notable FDI were oil and gas ($107.1 million), communication ($60 million),power, ($37.4 million), chemicals ($28.1 million), trade ($23.3), financial business ($45.5 million) and others ($ 28.1 million).

The US has taken the lead during this period by investing $118.6 million and UK was second with FDI of $84.8 million. The share of other major investing countries in FDI during last six months came to: Netherlands 23.8 per cent, Japan 23.8 per cent, Hong Kong 14.8 per cent, UAE 12 per cent others 167.2 per cent.

The substantial increase in the flow of FDI is an indicator that the investment climate in Pakistan is improving. The number of queries received by the BoI and visit to Pakistan of foreign business delegation has increased manifold.

Recently, German delegation of M/s Daimler Chrysler and Coastal Group of the UAE visited Pakistan and expressed interest to invest $3 billion in Hydel-power generation and automobile sector.

The METRO Group has decided to establish 3 to 4 outlets/ stores at Lahore and Karachi. M/s Jeffery International Group of the UK who recently visited Pakistan is going to start flight operation from Manchester to Islamabad during this year.