Foreign investment down by over 41 percent: Daily Times

By Mushfiq Ahmad

KARACHI: Pakistan managed to attract only $200.1 million in foreign direct investment in July this year, down by 41.6 percent from $342.5 million received in July last year.

According to official figures released here on Monday, net inflow of foreign investment in the country was even less-$195.6 million-because an outflow of $4.5 million was recorded under the head of portfolio investment.

Inflows of foreign investment in the country have been declining for about two years because of deteriorating economic conditions of the country, poor law and order situation, and lack of infrastructure.

Pakistan's gross domestic product grew by only 2 percent in the last fiscal year, as aggregate demand came down sharply owing to extraordinarily high inflation and low wages. As a result, investors see little opportunity of making profits in this country.

Economists say that the country received foreign investment mostly in banking and telecom sector in Shauka Aziz era. These two sectors are almost saturated now and there is little incentive for anybody to invest more money.

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