Foreign Direct Investment in Pakistan rises by 10% to $1.080 Billion
The economic measures have started paying some dividends.
KARACHI (Dunya News) - Foreign investment in the country flourished after a long pause and a growth of 10 percent to $1.080 billion was recorded in the six months of the current fiscal year, the State Bank of Pakistan data showed.
The economic measures according to an analyst started paying some dividends as after a long gap in the first six months the barrier of $1 billion has been crossed. However, the stock market was on the losing side as the foreign fund managers repatriated their investment during July to December period. Outflow from the Pakistan Stock Exchange stood around $254 million as against $236 million of the same period last year or 2015.
There has been general tendency among the foreign fund houses to pull out from the emerging markets as they felt that with the rising interest rates and hope of further rise in the US in 2017, the best option to park their funds would be the US treasury or bonds.
Another analyst said that foreign direct investment recorded increase because of one time arrival of payment received from the Netherland as they bought majority of stakes of Engro Foods amounting to $464 million. Another factor which increased the net foreign investment climbing by 52.5 percent to $1.804 billion was the issuance of the Euro Bonds by the government during the period.
The government and economists mostly bet on China Pakistan Economic Corridor (CPEC) as the project would yield around $5 billion dollars year in the coming years.
