KARACHI, Aug 1: The first month of the current fiscal year failed to attract portfolio investment in the equity market while the inflow of foreign direct investment (FDI) could see the same fate, market experts said.

Latest official information showed the net outflow in July from the equity market was $46.48 million. A big gap was noted in inflows and outflows. Total outflows were $79 million while the inflows were limited to $32.6 million during the month.

The country faced steep fall both in FDI as well as portfolio investment during the last financial year.

The FDI fell from $5.4 billion in 2008 to just $1.5 billion in 2010-11. The portfolio investment followed the same track and a net investment fell to $364 million compared to $588 million in the preceding year.

“The investment scenario looks bleak as neither the economy improving nor the law and order situation,” said Mohammad Imran, a researcher and investment expert.

Analysts said the country’s economic hub Karachi was passing through its worst period these days as daily killing had marred its attraction for investment and growth.

The State Bank in its monetary policy has showed deep confidence on Pakistan’s external account and appreciated the record export growth, remittances and foreign exchange reserves.

However, there was little about the possibilities to maintain this growth on external front during the current fiscal year.

Analysts said the poor economic growth during the last three years and little hope for improvement during this fiscal year would not create attraction for the investors to put their money in Pakistan.