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FDI exceeds $1b in four months

KARACHI — Foreign Direct Investment (FDI) continue to pour in despite a volatile political situation in Pakistan. It exceeded $1 billion milestone, an increase of four per cent during the first four months of fiscal year 2007-08.

According to State Bank of Pakistan (SBP), central bank, statistics foreign direct investment during the July-October 2007 increased by 3.9 per cent. The country's central bank statistics showed that FDI was $1.2994 billion during the first four months of present fiscal year as compared to $1.2501 billion during the same period of corresponding period.

During October, net investment, including FDI and portfolio investment, showed significant growth of 63 per cent from $99.1 million to $1.161 billion, an increase of $619.9 million. The FDI during October was increased by 35 per cent from $962.5 million to $1.2994 billion, an increase of $619.9 million.

Taking individually, the FDI in October rose by 35 per cent from $962.5 million to $1.2994 billion, while portfolio investment increased by 1,025 per cent to $310.6 million from $27.6 million.

Reasons given by the economists for the continued rise in foreign investment was that the country's economic fundamentals were strong and had the ability to attract foreign investment despite the last few months' uncertainty that alone shows the investors were not unduly worried over the present political turmoil that had engulfed Pakistan.