In the first quarter of this fiscal year, foreign private investment increased 51% to $ 564.8 million as compared to $374 million in the same period of FY2018 .
In the meantime, foreign direct investment (FDI) contracted by 3.1 per cent points between July and September, to $542.1 million, compared to $559.4 million in the year-ago quarter.
Although, foreign direct investment (FDI) increased to $385.3 million in September, up 111.6% from $182.1 million in the same month last year.
If the trend of September month continues for rest of the fiscal year, the country could experience record investment as compared to preceding five years, but this counts on the business environment and the low cost of running a business.
The SBP data shows that most of it came from Norway and even higher than China, which has been the country’s largest investor for the past three years. Total of $253.2 million was invested in September.
In addition to it, inflows from China fell by 70.4 per cent points from July to September, to $ 103 million, compared to $ 348 million in the corresponding months of the previous year. PM Imran Khan recently had visited China to accelerate work on projects under the China-Pakistan Economic Corridor (CPEC).
The sector-specific investment shows that telecommunications were the highest at $246.4 million in the quarter. This indicated a huge increase of 389.6 per cent points to over $54 million, which was observed in July-September of fiscal year 19. The Oil and Gas sector has been at the top of the government’s priorities to get some huge investment, but the response in the last quarter is unsatisfactory.
The attractiveness of hydropower also reduced as the investment dropped from $ 36 million to $ 27.3 million. The inflows in automobiles made little difference: they amounted to $25.8 million after $29.5 million. Although, electric machinery grew strongly as they reached $64.8 million in the quarter, up from $ 5.2 million in the first quarter of the fiscal year 2019.