20000130

$306m foreign

investment

in 1st half

of 1999-2000

ISLAMABAD: Pakistan attracted a total of $306 million of foreign direct investment (FDI) in the first half of the current fiscal year, official sources said on Saturday.

This shows an increase of around 25 percent as against the FDI inflow of the corresponding period last year.

The private foreign investment inflow into Pakistan during July Ñ December, 1998 was recorded at $255.2 million which included $248.6 million FDI and $6.6 million investment in portfolio.

The United Kingdom has topped the list in terms of FDI inflow by making a total $133.9 million investment in the first six months. This showed a net increase of $85.7 million over the same period last year.

This is followed by an investment of $95.3 million by the United States which, however, declined from $114.7 million in first six months of previous fiscal year.

The FDI from Saudi Arabia have increased almost 100 percent during July-December, 1999 to $21.3 million when compared with the FDI of $11.3 million in the same period last year.

There has also been a healthy increase in the FDI from UAE, which jumped to $12.2 million from mere $1 million in the first six months last year.

The other countries with some contribution to the FDI inflow in Pakistan in first six months are Japan Ñ $13.1 million, Germany Ñ $5.8 million, Korea Ñ $4.8 million, the Netherlands Ñ $1.8 million, France Ñ $0.4 million, Hong Kong Ñ $1 million, Italy Ñ $0.1 million Canada Ñ $0.2 million and from other countries, a total of $16.1 million.

As compared with the FDI, the investment in portfolio has dropped to a negative (-) $29.4 million in first six months as against that of $6.6 million in the corresponding period last year.

There has been a major decline in portfolio investment from the United Kingdom which was recorded at minus (-) $40.1 million as against that of minus (-) $16.1 million.

The other countries, which showed decline in the portfolio investment are USA Ñ $1.6 million, Saudi Arabia Ñ $4.8 million and the Netherlands Ñ $0.2 million.

Countries with notable portfolio investment are UAE Ñ $12.9 million, Hong Kong Ñ $4.5 million and Japan Ñ $0.2 million.

The major chunk of the FDI has been made in the sectors of chemical, pharmaceutical and fertilizer, food, beverages, Tobacco, Power and Mining & Quarrying Ñ oil exploration which accounted for $222.6 million out of the total FDI of $306 million.

The chemcial, pharmaceutical and fertilizer sector has remained on top with a lion's share of $102.9 million in first six months.

It was followed by food, beverages and Tobacco with $45.8 million of FDI, Power, $42.4 million and Mining & Quarrying Ñ Oil exploration, $31.5 million.ÑAPP