Foreign Direct Investment rises by 108%

Society Pakistan & World Affairs
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Excellent news.

July-Aug FDI rose by over 108 per cent

By Our Staff Reporter

ISLAMABAD, Sept 22: Foreign direct investment (FDI) in Pakistan in the first two months (July-August) of the fiscal year 2005-06 amounted to $225 million, up by over 108 per cent against $108 million of the same period last year. Board of Investment (BoI) Chairman Wasim Haqqie told Dawn that the FDI in August stood at $106 million compared with $55.8 million in the same month last year, showing an increase of about 90 per cent. Detailed data would be released in a couple of days, he said. He said Pakistan had attracted $1.524 million FDI during the fiscal year 2004-05, which was 61 per cent higher than the corresponding period of 2003-04. This also included $363 million FDI as privatization proceeds of 10 per cent first tranche of PTCL and $103 million second tranche of Habib Bank’s privatization. Mr Haqqie said the FDI target for 2005-06 had been set at $3.3 billion, which would be achieved by extending all possible facilities and concessions to foreign investors, especially those in the housing and construction sector.

Asked as to why the government had fixed a conservative target of $3.3 billion FDI for the current year when $2.6 billion would be coming as privatization proceeds of Pakistan Telecommunication Company Limited (PTCL) alone, the BoI chief said Etisalat of the UAE had already paid an amount of $260 million as first instalment of PTCL’s bid money. “Besides, many investors who have won major privatization transactions are paying bulk of their bid money by raising financing from the local banking sector. As such, since they are not bringing equity in the form of foreign exchange, the local fund raising is not included in the FDI,” he added. Sources said that Ghaith Pharoon of Attock Group — the successful bidder of National Refinery Limited — had deposited about $230 million of equivalent local currency from its local business and financing arrangements from the banks. Similarly, Warid Telecom also made an investment of about $200 million in Pakistan by raising financing from its local banks i.e. Bank Alfalah and United Bank Limited.

In the fiscal year 2003-04, the FDI in Pakistan stood at $949.4 million, which was 19 per cent higher than the corresponding period of 2002-03. This also included $198 million first tranche of the HBL sale proceeds. Similarly, the FDI stood at $798 million in 2002-03, which was 65 per cent higher than $484.7 million in 2001-02. This also included $176 million privatization proceeds of United Bank Limited. Pakistan attracted $9.3 billion foreign direct investment during the last 15 years since 1989-90. Mr Haqqie said the federal government was doing a lot in luring domestic as well as foreign investment, but all the business opportunities were lying in the four provinces. “In fact, they should identify projects, market them and provide basic facilities like gas, water and electricity, but except Punjab, their performance is not up to the mark.” The federal government was also not satisfied with the performance of 33 honorary investment counsels (HICs) appointed in 23 countries, he added. The BoI chief said the flow of FDI during the last fiscal year stood at $1.52 billion, showing an increase of over 60 per cent when compared with $949 million of the year before. The $1.52 billion investment also included $363 million privatization proceeds of the first $260 million instalment of PTCL and $103 million second tranche of Habib Bank Limited. He said if portfolio investment of $152 million was included, the total foreign investment during 2004-05 amounted to $1.677 billion.

http://www.dawn.com/2005/09/23/ebr2.htm

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Re: Foreign Direct Investment rises by 108%

wow great news, pakistan has a great future ahead thanx to mushy.

musharaf zinadabad, hope he continues this great work and leads pakistan to super power.

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Re: Foreign Direct Investment rises by 108%

Bad news for the PITaaz (Pakistani MATooz)

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Re: Foreign Direct Investment rises by 108%

Incomes, purchasing power of Pakistanis improve

By Our Correspondent

WASHINGTON, Sept 24: Four consecutive years of stable economic growth is having a positive impact on Pakistan where both average incomes and purchasing power have increased, says State Bank Governor Dr Ishrat Husain. Mr Husain, who is in Washington to attend annual meetings of the International Monetary Fund, says that a steady increase in the purchasing power of ordinary citizens has also raised the demand for various goods and services, having a positive impact on the national economy. Anatol Lieven, senior research fellow at the New America Foundation in Washington, agrees: “After many years of economic stagnation, Pakistan’s economy is now growing quite well, thanks to a mixture of wise economic policies and western aid and debt forgiveness after the Sept 11 terrorist attacks.” But he warns that signs of economic revival “should not lull us into complacency” because Pakistan had experienced similar high growth in the past but this did not produce long-term political or social stability. “For the benefits of this growth went overwhelmingly to a small fraction of the population, thereby increasing rather than decreasing social resentment. Corruption and tax evasion made it impossible for the state to transform Pakistan’s grossly inadequate infrastructure or to create a modern education system.” “Many of these critical failings still remain and until they are rectified Pakistan’s progress will remain fragile and its long-term viability as a state threatened. The greatest danger stems from the combination of population growth and ecological crisis,” Mr Lieven warns.

Mr Husain acknowledges that institutional corruption remains a debatable issue in Pakistan, but says that despite such problems the economy seems to have turned the corner. The country, he says, has moved out of a decade-old vicious cycle of stagnation and structural snags that impeded progress and obstructed investment. The IMF World Economic Outlook report also endorses Mr Husain’s optimism, predicting that growth rate in Pakistan will remain strong in 2005, underpinned by robust agricultural and manufacturing growth, and supportive macroeconomic policies. Reports published in the US media during the annual IMF meetings have also noted Pakistan’s spectacular 8.4 per cent growth rate in the fiscal year ending in June. One such report describes the current business boom in Karachi as “one of the most impressive indicators” of Pakistan’s economic revival. The report notes that in the last five years, the automobile sector, mostly based in Karachi, has seen a five-fold expansion — from 30,000 cars per annum to almost 150,000 during 2004-2005. Motorbike sales have surged to half a million a year, with export earnings during 2005-06 expected to reach the $17 billion mark.

Analysts note that in the early 2001, Pakistan’s per capita income growth was negative. Today the per capita income has risen to almost $700 per year, compared to $400 in 2001, as a result of financial and administrative reforms coupled with privatization and liberalization of the banking sector. One analyst quoted a recent ADB report, which says: “Pakistan’s economy is on solid ground due to macroeconomic fundamentals, more private investment and significant expansion in the Public Sector Development Programme.” In 1999, Pakistan’s external debt — a staggering $38bn — to GDP ratio was over 60pc, today it has come down to 37pc, the report notes. Analysts quoted in the report say that one indicator of the renewed trust in the business environment is the registration of 410 new public and private companies in IT, telecom and energy sectors with the Securities and Exchange Commission of Pakistan in August alone.

Some reports, however, warned that biting fuel oil prices threaten to take steam out of the growth momentum of Pakistan, with forecasts suggesting bitter inflation and current account levels. Quoting from an Asian Development Outlook 2005 Update release, the report says: “The steeper than projected increases in oil prices, shortages of essential food items, and strong domestic demand would push inflation at higher levels of 8.5 per cent than the earlier forecast of 5pc.

http://www.dawn.com/2005/09/25/ebr6.htm

bin bulaye
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Re: Foreign Direct Investment rises by 108%

May Musharraf continue to rule Pakistan for a long, long time. :k:

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Re: Foreign Direct Investment rises by 108%

good, keep it up Aziz.

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Re: Foreign Direct Investment rises by 108%

This is not new or special, foreign investment also grew in Sharif’s time, something no doubt that will be ignored

Key figures such as unemployment, crime, and poverty rate are also rising, of course Mushy lovers will also ignore those :rolleyes:

bin bulaye
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Re: Foreign Direct Investment rises by 108%

:rotfl:

Amjad Islam Amjad's Mujhy Apna Sitara dhoondna hai
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Re: Foreign Direct Investment rises by 108%

sure ^^ it was risen somehoe, but so were the debts, inflation, devaluation of rupee.

realdeal, mushy is not an angel who can make Pakistan into first world over night. but when something is happening better then give credit. your hate is due.

Glas is half full and rising not half full i would say the answer.

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Re: Foreign Direct Investment rises by 108%

Fair point, but the indicators i mentioned are also rising which are making life very hard for the average person in Pak.

And you are correct, nothing can be done overnight, but he has been in total power for over 5 years, with the full goodwill of the West and Western financial institutions.

He has made some good decisions, like siding with US in 9/11, but that would have been done by any non-fundo leader.

The point is his performance is very average, nothing to brag about,especially with all the international support he has, but some speak like he is the best thing since sliced bread.

mama k haath ka khana....
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Re: Foreign Direct Investment rises by 108%

^^Oh reel baboo. quit crying over spilt milk.

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Re: Foreign Direct Investment rises by 108%

Do you actually know what the phrase 'crying over spilt milk'means? you have not used it in the proper context

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Re: Foreign Direct Investment rises by 108%

^^ Good now I know you can pay attention O Hi-Hi-T graduate! Accept the fact that Pakistan is doing very well. Your are burning yourself with rage and jealousy.

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you being serious? when was the last time you were in Pakistan? and please don’t give me the BS that you live there

When key indicators like unemployment,crime, and poverty rate are increasing, how can you say Pak is doing well? Mushy supporters need a reality check

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Re: Foreign Direct Investment rises by 108%

RD keep crying, while Pakistans on the road to progress, I knwo articles like these act as mirchi to your wounds...

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Re: Foreign Direct Investment rises by 108%

while increasing FDI is good if it translates to greater employment and things..this press statement is deceptive for someone who skims through it..should one consider the increase in FDI significant when most of it is driven by sales of preexisting assets? While the fact that foreign companies (and mostly Arab owned companies at that) are willing to invest in pakistan is reassuring and a sign of the success of the early reforms introduced by Ishrat Hussain and Shaukat Aziz..there has been no billion dollar...from the fresh investment which would make the FDI increase beneficial..to my knowledge the highest amount of investment from overseas occurred during BB's time ..in that whole disastrous IPP episode.

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Re: Foreign Direct Investment rises by 108%

It burns a lot of people - military haters, Punjab/Punjabi haters, and just haters all round. They cannot bare to see that year on year for six years FDI, Forex Reserves, GDP per capita and growth rates have been increasing, reaching historic highs for Pakistan.

Musharraf and Aziz have done more in six years than BB and Nawaz did in 11 years between them, and all level headed and fair people would recognize that.

share regrets of ur life
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Re: Foreign Direct Investment rises by 108%

Once again you ignore ground realities like increased unemployment,crime rate and and poverty rate. And of course when Mush does something other govts have done, you pretend like he is the first to do that.:rolleyes:

As for things like forex, you totally ignore crucial factors like increased remittances post 9/11. You should try living on the ground in Pakistan to see what the situation is like for the common man instead of parroting what certain biased people tell you.

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Re: Foreign Direct Investment rises by 108%

Don’t repeat any** FACTS** around here, the Busharraf lovers will simply throw a fit,claim their false, and refuse to believe it.

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Seen as you live in a foreign land, far, far away from Pakistan, and you hate Punjab and the military, and just hate generally, your views don’t count much. BB did a “lot” for Pakistan, as her frozen Swiss Bank accounts show, and so did Nawaz as shown by his present abode in a royal Saudi palace. :rolleyes: Indeed.