FDI IN PAKISTAN REACHED US$2.096 BILLION IN 7-MONTHS'07

Najam Khan
Mar 26 - Apr 01, 2007

A major upsurge has been observed in terms of Foreign Direct Investment (FDI) during the period of seven months (July '06-Jan '07) which has risen to US$2.096 billion showing a significant increase of 70.86 % as compared to US$1.2267 billion last year. FDI for the month of Jan '07 stood at US$226.4million, a decline by 42.48% compared to US$393.6 million Dec '06.

 

FDI INVESTMENT - SECTORS CONTRIBUTION

The major influx came in the financial business sector with US $ 553.6 mn 26.4% of total FDI investment in Pakistan during the period of seven months (July 06-Jan 07). Pakistan used to be an agro based economy which has now shifted towards the service sector. There has also been a flood of the foreign direct investment has been witnessed in the communication sector. Recently China Mobile has declared an accord with Millicom International to purchase 88.86% stakes of Paktel with an enterprise value of US$460 million. Paktel is the 5th largest GSM providers in Pakistan.

Apprehended below rest of the major contributed FDI sectors (Ranked Wise):

SECTOR

MILLION $

% AGE

Financial Business

553.6

26.4

Communication (IT&T)

546.4

26.1

Oil & Gas Exploration

328.5

15.7

Trade

104.6

5.0

Power

102.4

4.9

Construction

86.2

4.1

Others

374.3

17.9

Total

2,096.0

100.0

 

FDI INVESTMENT - PEAK COUNTRIES

The United States maintained the lead position in the list of top investing countries with 24.5% share. The share of other major investing countries goes to Britain - 23.3%, the United Arab Emirates-14.1% and Switzerland- 6.2%

 

COUNTRY

MILLION $

% AGE

U.S.A.

512.9

24.5

U.K.

488.2

23.3

U.A.E.

295.9

14.1

Switzerland

129.1

6.2

Netherlands

62.5

3.0

Mauritius

44.7

2.1

Others

562.7

26.8

Total

2,096.0

100.0