Karachi: The net foreign direct investment (FDI) witnessed a decline of 15 percent in the first quarter of the current financial year due to dismal prevailing investment sentiments in the country, State Bank of Pakistan reported on Tuesday.
The net foreign investment including Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) decreased combinedly to $183.5 million in the Jul-Sep as against $216.1 million net investment landed in the country.
The FPI inflows received by the equity markets and bonds have increased to $96.3 million in the period of July-Sept as compared to outflows of $46.9 million recorded in the previous year.
FDI, on the other hand, showed a dismal situation in the real sector as investors poured in $87.2 million in first quarter versus $263million in the same period of yesteryear.
The FDI inflows were recorded $286.7 million whereas its outflows were recorded at $199.6 million in the said period.
The growth in FPI inflows due to investors’ attraction in local shares markets led the overall investment volume towards in the green zone, analysts said, the constant inflows of FPI are positive for the economy in the future.
But uncertain political condition, energy crisis and prevailing law and order situation coupled with global economic slowdown have kept foreign investors at bay for expanding their business in the highly risky environment.
Economic experts said FPI inflows are likely to grow with handsome pace in upcoming months as the government’s investor-friendly policies are expected to attract investment in high-returnable stocks. They pinned hopes that potential in business is immense in different sectors particularly in telecom, finance, power and fast moving consumer goods that are likely to attract handsome FDI and FPI in the country.
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