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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Foreign investment in Pakistan down 42 percent: Reuters

KARACHI (Reuters) - Net foreign investment in Pakistan fell 42.7 percent to $2.21 billion in the first 10 months of the 2008/09 fiscal year compared with $3.86 billion in the same period last year, the central bank said.

Foreign private investment fell 27.9 percent to $2.75 billion in the July to April period, compared with $3.82 billion in the corresponding period last year, the State Bank of Pakistan said on its website (www.sbp.prg.pk).

Out of total foreign investment, foreign direct investment was down 13.8 percent to $3.20 billion, compared with $3.72 billion in the year-earlier period.

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Pakistan hopes to attract $5bn investment by expats: Daily Times

* Law to protect investments by overseas Pakistanis soon

Daily Times Monitor

LAHORE: A new law protecting investments by overseas Pakistanis may attract as much as $5 billion, Federal Minister Farooq Sattar said on Wednesday.

The minister said in an interview, “If the international corporate sector can get sovereign guarantees, then why not overseas Pakistanis. Once we introduce legislation – within the next four months – it will give them confidence.”

The minister said the investment was needed to revive the economy that had slumped last year after seven years of high growth. Last year, overseas investment dropped by a steep 38 percent.

Waqar Ahmed Khan, the minister for investments, had said in an interview last month, the government planned to raise $10 billion in foreign direct investment by December.

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FDI surged by 45 percent: Business Recorder

RIZWAN BHATTI

KARACHI (January 16 2009): The Foreign Direct Investment (FDI) has witnessed a raise of some 45 percent during December despite the looming clouds of war between Pakistan and India. The central bank on Thursday revealed that FDI has also crossed the mark of 2 billion dollars during December 2008 with a highest investment of 724 million dollars in a single month during the current fiscal year 2008-09.

"The surged in the FDI is a positive indication and reflected that confidence of foreign investors on Pakistan economy is still retained despite the tensions on Eastern boarders after Mombai attacks," economists said. They said that increasing FDI reflects that country's economic fundamentals are still strong despite several internal and external shocks and have ability to attract foreign investors.

Other economic indicators like foreign reserves and exports are also improving and would attract more investment in the future, they said. "With the current trend we are expecting that country's FDI would be around four billion dollars by the end of current fiscal year 2009", they added.With an increase of some 260.95 million dollars, FDI has reached 2.2327 billion dollars during the first half of current fiscal year 2008-09 (July-December), as compared to 2.0663 billion dollars during the same period of last fiscal year 2008.

Month-on-month basis the country has witnessed highest FDI in December as compared to other first five months of the current fiscal year, as foreign investors have invested some 724.28 million dollars in December 2008.

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Terror war will now cost Pakistan $8bn: Daily Times

* Ministry of Finance estimates $34.5 billion losses to Pakistan since 2001

By Sajid Chaudhry

ISLAMABAD: The direct and indirect cost of the war on terror borne by Pakistan is likely to increase to $8 billion per annum in the next couple of years from the current $6 billion, an official source told Daily Times on Thursday.According to the official, estimates compiled by the Ministry of Finance indicate that during the eight years since 2001, direct and indirect losses to Pakistan’s economy due to the war on terror have been estimated at $34.5 billion.

According to the official, the loss of lives and economic cost imposed by the war is now rising to an unbearable level and a very negligible portion of these costs is defrayed by the government’s development partners.Since 2001, losses of $5 billion have been estimated in foreign direct investment, more than $5 billion in exports and $5.5 billion in privatisation, the official said.

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Foreign investment surges 40pc in July: The News

By Shahzad Anwar

KARACHI: Net inflow of foreign investment in the country augmented by 40 per cent during July 2008 as compared to the same period last year.

According to latest figures of the State Bank of Pakistan (SBP), total foreign investment in the country stood at $220.5 million during the first month of fiscal year 2008-09 compared to $157.5 million during July 2007. The quantum of Foreign Direct Investment witnessed a substantial increase of 76.1 per cent to $340.7 million during July 2008 as compared to $193.5 million in the same period of fiscal year 2007-08.

It is pertinent to note that during fiscal year 2007-08, total foreign investment declined to $5.193 billion which was recorded at $8.428 billion in financial year 2006-07. However, during last fiscal year the net inflow of FDI slightly improved to $5.153 billion as compared to $5.139 billion a year back.

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Finance, telecom help fetch $5.1bn in FDI: Dawn

By Shahid Iqbal


KARACHI, July 26: Increased attraction for financial business, telecommunications and oil and gas exploration collectively pushed foreign direct investment even higher than last year despite continued political uncertainties and poor economic performance.

The State Bank of Pakistan reported that while the telecommunications still maintained its attraction for the FDI, the financial business proved more attractive and invited more foreign investment than the telecom.

Researchers said for the first time financial business attracted more FDI than telecom sector during the last five years.

Telecom was still the second highest attractive sector despite decline in volume of investment in 2007-08 compared to last year.

Total FDI which crossed $5.152 billion compared to $5.139 billion of last year, a growth of 0.3 per cent, surprised many analysts and economists, painting a bleak picture for the economy.

For more on this article, please click on the following link: Finance, telecom help fetch $5.1bn in FDI: Dawn

UAE-Pakistan trade touches $7b: Gulf News

By Himendra Mohan Kumar, Staff Reporter
Published: July 24, 2008, 23:37

Abu Dhabi: The size of Pakistan-UAE bilateral trade touched $7 billion in the last fiscal year ended June 30 with the balance of trade in favour of the UAE, Pakistan's outgoing ambassador to the UAE Ahsan Ullah Khan said.

"Pakistan's exports to the UAE during 2007-2008 were valued at $1.8 billion as compared with $1.3 billion the previous year," he said. "Pakistan's imports from the UAE for the same period rose to $5.2 billion from $3.4 billion," he added.

Khan, however, said, "The foreign direct investment from the UAE in Pakistan in the last fiscal fell to $800 million from $1.4 billion the previous year."

He further informed that annual remittances to Pakistan from the UAE through official banking channels by non-resident Pakistanis rose to $1.2 billion from $860 million the year earlier.

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French investment rises to $500m in Pakistan: The Post

Associated Press of Pakistan

KARACHI: The French investment in Pakistan has risen to 500 million dollar, this was stated by the Ambassador of France to Pakistan Regis de Belenet.

The envoy pointed out that the boost of French investment in Pakistan was mainly due to Lafarge, a world leading company in cement. He said more investment may come towards the construction of a plant for production of vaccine for the livestock. This would be by a French company Merial in collaboration with the government of the Punjab.

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Makro to invest $300m in Pakistan: The News

Wednesday, June 25, 2008
ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Tuesday said all economic sectors in Pakistan are open to foreign direct investment and a Level-playing field is provided to both local and foreign investors allowing 100 per cent foreign equity.

He was talking to Farhad Zulfiqar, Executive Chairman Makro Habib Pakistan, a joint venture between Makro Cash and Carry, a leading Dutch wholesaler of food and non-food products in Asia and South America and House of Habib, who called on him here at the PM House this morning.

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China's top financial enterprise to invest in Pakistan's financial sector; other key projects: APP

BEIJING, June 24 (APP): The China's top financial enterprise has assured for financing in major projects particularly in Financial Sector in Pakistan. The assurance was given when Pakistan's Foreign Secretary Salman Bashir met the chief of the China International Capital Corporation, Levin Zhu here, a senior official at Pakistan Embassy said Tuesday.

Zhu while appreciating the economic policies of Pakistan's government, announced that his organization would make massive investment particularly in financial sector that has great potential.

He said that there is big scope for investment in energy, power, mining, oil and gas exploration, infrastructure, agriculture and other important sectors.

The Foreign Secretary on the occasion informed that foreign investment is fully protected in Pakistan and all economic sectors are open to Foreign Direct Investment.

Pakistan makes no distinction between local and foreign investors, as 100% foreign equity, remittance of royalty, profits and dividends is allowed under Pakistani laws, he said.

He said that the establishment of Special Economic Zone (SEZ) would go a long way in facilitating Chinese investment in Pakistan.

For more on this article, please click on the following link: China's top financial enterprise to invest in Pakistan's financial sector; other key projects: APP

Pakistan to help establish special economic zone for Chinese investors: Daily Times

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Wednesday said Pakistan would extend all possible help to establish the first-ever Chinese Overseas Economic Zone in the country.

PM welcomed the Haier Ruba joint venture and said the government would encourage more joint ventures to promote economic cooperation between the two countries.

Talking to Lu Keng, chairman of the Haier Group and Haji Koch Muhammad, chairman Ruba Group at PM House, he said joint ventures between the private sectors was the best way to promote trade and investment between our two countries.

He said foreign investment was fully protected in Pakistan and all economic sectors were open to Foreign Direct Investment.

Pakistan makes no distinction between local and foreign investors, as 100 percent foreign equity, remittance of royalty, profits and dividends is allowed under Pakistani laws, he said.

For more on this article, please click on the following link: Pakistan to help establish special economic zone for Chinese investors: Daily Times