INVESTMENT INFLOW FROM UNITED STATES TAKES A QUANTUM JUMP IN LAST 8 MONTHS
The country had received 1.503 billion dollars foreign direct investment while portfolio investment stood at 471 million dollars
FROM KHALID BUTT, LAHORE
Mar 27 - Apr 02, 2006
The inflow of foreign investment in Pakistan has expanded close to two billion dollars in eight months of the ongoing financial year 2005-06.
From July 2005 to February 2006, Pakistan had received 1.974 billion dollars worth total foreign investment, 1.294 billion dollars higher than the comparative period of last fiscal year. In percentage the inflow of investment has shown 190 per cent growth in eight months of this fiscal.
In last fiscal the country had received only 680 million dollars investment from July 2005 to February 2006.
According to break-up available with The Page, the country had received 1.503 billion dollars foreign direct investment while portfolio investment stood at 471 million dollars in eight months of this fiscal. In the same period last fiscal, the inflow of foreign direct investment amounted to 597.6 million dollars while portfolio investment remained at 82.3 million dollars.
A surprising development is that the country had received a record amount of 721.50 million dollars total investment from the United States in this fiscal year so far. This is certainly a massive increase in investment inflow when compared to $192 million investment during same period last financial year.
The inflow of FDI from the United States amounted to 327 million dollars while portfolio investment stood at 398 million dollars.
Saudi Arabia emerged as the second major investor, having total investment of 271.1 million dollars from July 2005 to February 2006 while Switzerland was the third key investor as this country made investment of 157.50 million dollars in Pakistan during the said period of this fiscal.
Details of FDI inflow pointed out that Pakistan has received 327 million dollars FDI from the United States, 270.4 million dollars from Saudi Arabia, 152.4 million dollars from Switzerland, 116.3 million dollars from United Kingdom, 77 million dollars from UAE, 25 million dollars from Germany, 19.8 million from Hong Kong, while remaining FDI was received from other countries in the world.
Meanwhile, the country also received 394.7 million dollars investment at stock market from the United States, 42.7 million dollars from UAE, 39.2 million from Hong Kong, 8.4 million from Singapore and 5.1 million dollars from Switzerland, etc.
According to detail, the federal government had fixed the revised target of three billion dollars foreign investment in the current financial year. However, the current trend shows that Etisalat would surpass this target easily in the wake of payment for acquiring management control of PTCL this month.
Pakistan's textile exports have surged by 1.06 billion dollars in seven months of the ongoing financial year.
From July 2005 to January 2006 the exports of textile products stood at 5.6 billion dollars as against 4.54 billion dollars exports of this industry in the comparable period of previous financial year.
In percentage the exports of textile showed 23 per cent impressive growth in seven months of this fiscal over the same period of last fiscal.
In Pak rupees the textile exports generated 334 billion rupees from July to January period of the current fiscal, whereas, in the same period last fiscal the exports amounted to 269 billion rupees. Thus in rupees the textile products exports showed an increase of 65 billion rupees this year.
Interestingly, all the major categories of textile products have shown growth in their exports, especially bed-wear, ready-made garments and cotton yarn remained the top-three sectors regarding growth in their exports vis-a-vis other products of textile. The bed-wear sector showed 76 per cent growth ready-made garments indicated 38 per cent increase while cotton yarn marked 33 per cent increase during the said period of 2005-06.
In foreign exchange bed-wear generated 1.18 billion dollars from July to January this fiscal while in the same period last fiscal bed-wear exports expanded to 213,785 metric tons during this fiscal as against 124,099 metric tons in last fiscal during July to January period.
Meanwhile, ready-made garments fetched raised 760.22 million dollars through exports in seven months. This sector had fetched only 552 million dollars during the same period of the last fiscal year. In terms of quantity, a total of 21,268 thousand dozen of ready-made garments were exported in the ongoing financial year as compared to 17,984 thousand dozen during the corresponding period of last fiscal.
Cotton yarn exports amounted to 739 million dollars, 33 per cent higher when compared to 556 million dollars exports during last financial year. In quantity cotton yarn exports settled at 361,405 metric tons from July to January period of this fiscal. In the same period of last fiscal a total of 266,364 metric tons of cotton yarn was exported from Pakistan.
Meanwhile, cotton cloth and towel sectors have also depicted an impressive increase in their exports in seven months of this fiscal. Cotton cloth exports stood at 1.209 billion dollars (Rs 72.26 billion). In quantity cotton cloth exports amounted to 1.485 million thousand square meters. In percentage the cotton exports increased 22 per cent growth in foreign exchange. Similarly, towels attracted 328.23 million dollars during July to January 2005-06 and showed 16.44 per cent increase over the corresponding period of previous fiscal.
The textile industry has set the target of increasing textile exports to 9.60 billion dollars in 2005-06 as against actual exports of 8.90 billion dollars in 2004-05. The current trend indicates that the textile sector is on the path to achieve the annual target of exports in this fiscal year.