Karachi: The net Foreign Direct Investment (FDI) witnessed an increase of 105 percent in the first two months of the financial year 2012-13 mainly on the handsome inflows of Foreign Portfolio Investment (FPI), State Bank of Pakistan reported on Thursday.
The FPI inflows received by the equity markets and bonds have increased to $74.7 million in the period of July-August as compared to outflows of $47.5 million recorded in the previous year.
FDI, on the other hand, showed a dismal situation in the real sector as investors poured in $33 million in Jul-Aug as against $99.2 million in the same period of yesteryear.
The growth in FPI inflows due to investors’ attraction in local shares markets led the overall investment volume towards in the green zone, analysts said, the constant inflows of FPI are positive for the economy in the future.
Countries such as Italy, Hong Kong, China made quite handsome investments in Pakistan during the said period. On the other hand, countries like Norway, Switzerland and Malaysia pulled out investment from Pakistan in the said months.
Economic experts said FPI inflows are likely to grow with handsome pace in upcoming months as the government’s investor-friendly policies are expected to attract investment in high-returnable stocks.
They pinned hopes that potential in business is immense in different sectors particularly in telecom, finance, power and fast moving consumer goods that are likely to attract handsome FDI and FPI in the country.