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Foreign investment up 60pc in December

T A MALIK

ISLAMABAD: The foreign direct investment has increased by 60 percent during the month of December 1999 as compared to the investment in November last, official sources told Business Recorder here on Wednesday.

The country has received foreign direct investment of US 306 million dollars during first six months of the current fiscal in 16 sectors of economy. The foreign investment was 55.3 million dollars in December 1999 and 34 million dollars in November.

According to sources, the chemical, pharmaceutical and fertilisers sectors attracted the foreign investors where they put investment of 103 million dollars in first six month of the current fiscal 1999-2000.

The investors have invested 45.8 million dollars in food, beverages and tobacco and 42.4 million dollars in power sector during the same period.

The investors from the UK and the USA continued their investment in Pakistan and put 134 million dollars and 95.3 million dollars respectively in various sectors. However, both the countries withdrew their portfolio investment of 41.7 million dollars during six month (July to December 1999). The UAE has also invested 25 million dollars, Saudi Arabia 16.5 and Japan 13.3 million dollars.

The country has received 25.2 million dollars in July 1999, 24.7 million dollars in August, 98.4 million dollars in September, 67.5 million dollars in October, 34 million dollars in November and 55.3 million dollars in December 1999.

July, August and November saw a net investment of 25.2 million dollars, 24.7 million dollars and 34 million dollars, respectively.

However, 60 percent increase in just 30 days from November to December shows that foreigners have expressed their confidence on the policies of the new government, an official of Board of Investment (BoI) said.

Mining, quarrying and oil exploration sectors have also attracted the investment of 31.5 million dollars during six month of the current fiscal.

Foreign direct investment flow in other economic groups is not encouraging. These includes; petro-chemical and refining $11 million; financial business $16.6 million; transport, storage and communication $14 million; construction $10 million; electric machinery $1.4 million; electronics $0.6 million, machinery other than electric $2 million; trade $4.7 million; textile $0.9 million; cement and sugar $6 million; metal products $1.3 million; and tourism, paper and pulp $0.4 million.

An official of the Board of Investment (BoI) told Business Recorder that government has opened petroleum and communication sectors, which have lots of potential for foreign investors.