The Foreign Direct Investment (FDI) in the country has increased over 137% to $161.4 million in July this year, compared to $ 67.9 million in the same period last year.
Mohammad Imran , analyst at Jahangir Siddiqui and Co. says " the dream of federal government to collect FDI of $ 3 billion in the current year could come true.
The recent figures of FDI are indicating that foreign investment would increase."
The Privatisation commission would receive a payment of $ 2.114 billion , against the sell off the Pakistan Telecommunication Company Limited PTCL by the end of August or september in this year
In this connection , Etisalat international had appointed a group of seven banks, to act as mabdated lead arrangers in a $ 2.114 billion facility to finance 90% of its in the acquistion bid for a 26 percent stake in PTCL
Meanwhile the privatisation ais also finalising the privatisation of the karachi electric supply corporation KESC in the current fiscal year , which would also help increase direct investment in the country.
According to the data available at the state bank the country received portfolio investment and direct investment of $ 41 million and $ 119.6 million respectively , in the first month of the current fiscal year.
In short, total investment in pakistan has gone up by 82 % to $ 1.676 billion during 2004-05 compared to $ 921.7 million receieved in 2003-04. The direct investment touched $ 1.524 billion durin the last fiscal year , against $949 million.
*but when it comes to expensing the government is all short of money and always looking forward to loans and help 
*
Re: Foreign Investment up by 137%
My friend foreign investment is not a good indicator of a booming economy.It is good to have lots of foreign investment but at the end all the money goes back the country of the investor...right?With little gain to Pakistan.
Would rather see quality of life and demand of pakistani exports increase.
Re: Foreign Investment up by 137%
Would rather see quality of life and demand of pakistani exports increase.
Err, no..Why would Pakistan let people invest if all the money went to them? A percent goes to them, and a percent goes to Pakistan. The workers will all be Pakistani, so job money goes to them..Buying/renting land, maintenance costs etc etc go to Pakistan obviously..
Re: Foreign Investment up by 137%
That is right ........ FDI is one of the signs of how well a country is doing. but friends we are witnessing the loss of an oppurtunity of absolutely huge proportions.... FDI is good if its helps in job creation. That will help increase the per capita income create a true middle class attract multi nationals more competition and standard of living will improve. Pakistan has had a great chance since 2001 as remittances grew FDI increased loan terms softened we had spare resources at our disposal and if only they were either invested in industry or in HR developement things could have been different. What has happened that due to the combination of lack of direction and oppurtunists in the establishment we have failed to come up with a solid plan to invest these resources. As a result all investment has gone into speculative sector .i.e stock exchange and property market etc etc. Result......a top performing stock exchange as long as remittances keep coming in and loan terms stay soft which they will not but no job creation due to lack of investment in industry. So the people who were sitting in top positions and who already had resources made more and more money and common man was further crushed under high inflation.
Re: Foreign Investment up by 137%
vengaboyz pls mention where this report is from.
Re: Foreign Investment up by 137%
Would rather see quality of life and demand of pakistani exports increase.
I'm afraid foreign direct investment can do good as well as bad. If you compare Pakistan to India which is always the case, Pakistan always was one ste ahead in terms of Foreign Direct Investment and has always encouraged it. So why is it good? Well, this kind of investment allows the workers to become skilled. There is always a demand for skilled workers. The bad points are that relying solely on foreign direct investment eliminates the creation of local industries and when for whatever reason foreign direct investment ceases to continue, the country comes to an abrupt HALT. It is therefore, best to encourage foreign direct investment in association with building the local industry to allow planning for the future. This way foreign dirct investment can be controlled and can be beneficial.
Re: Foreign Investment up by 137%
Where is all this money in Pakistani reserves coming from, i'd like to ask!
Re: Foreign Investment up by 137%
Interesting points there but you have to keep in mind what equally important is the kind of onvestors you're attracting, whether they have any sort of long term comomitments with your nation or are they there for purely short term gains. They've apaprently managed to get assurances from these folks now that they'd be in there for the longer term -- like the Karachi based investement worth $30 Billion or so which will take place over a 10 year period or so. And on the other points some other posters have touched on, investment is crucial for ANY country. It's the only way to get capital which our internal investors lack. Furthermore, it signals confidence in the country's future economic prospects, and indeed the way it's looking out now is that the government has played its cards right as far as the handling of the economy is concerned.
Re: Foreign Investment up by 137%
Let's hope so - it would be good to see Pakistan's economy stabilize and prosper!
Re: Foreign Investment up by 137%
Its a combination of things man. Post 9/11 oversees pakistanis have started to shift their capital back to pakistan due to insecurities abroad. Post 9/11 international agencies big lenders like US,japan and Paris Club have softened their loan terms and rescheduled the repayments, tax net in pakistan has widened . National saving schemes in Pakistan used to offer interest of about 17% untill few yeas ago and so the banks in order to compete had to offer a competitive rate to that. This meant that you will only risk a business if you are certain that it will give you return of above 17%. This government slashed that return in few years to around 3% to encourage people to invest into businesses and thus cause job creation which will help money to circulate in the society. Also banks dropped their rates both lending and profit.So the had spare funds too. Now if you combine all of this it gives you a lot and i mean a lot of idle capital. With no guaranted returns there was only one thing people i.e capital holders could do and that is investment. Ideally this should have led to job creation and pakistan would have been on its way to prosperity in real terms but that never happened. As i said most of this idle capital was invested into speculative sector e.g stock and property hence the property boom and a top performing stock exchange. Loss is of common man because the money invested in these sectors does not allow money to change hands instead it circulates in a small sector.
Re: Foreign Investment up by 137%
http://asia.news.yahoo.com/060726/3/2nmso.html
Pakistan FDI more than doubles to $3.5 bln in 2005/06
KARACHI, July 26 (Reuters) - Foreign direct investment in Pakistan more than doubled in the fiscal year 2005/06 to $3.52 billion, led by inflows into the communications and energy industries and the financial sector, official figures show. Data released by the State Bank of Pakistan on Wednesday showed FDI for the year ended June 30 rose from $1.524 billion a year ago. The FDI figures for 2005/06 include $1.54 billion worth of privatisation inflows, compared with $363 million a year ago. The communications sector attracted the most foreign investment during the year, $1.94 billion, followed by $329 million invested in the financial sector, $321 million in the power industry, and $313 million in oil and gas exploration.
The sharp rise in investment in communications has mainly stemmed from the sale of a 26 percent stake in Pakistan Telecommunication Co. Ltd. to Dubai-based Emirates Telecommunications (Etislat). The telecommunications sector alone received $1.19 billion in the form of privatisation proceeds. The United Arab Emirates led the list of foreign investors with investment of $1.42 billion during the year, followed by the United States with $517 million and Saudi Arabia with $278 million. Inflows from foreign portfolio investment during 2005/06 were $351 million, up from $153 million in 2004/05.
Re: Foreign Investment up by 137%
Haris Zuberi it was from current economic horizons
Stalker
the worst thing is that the government changes every now and then and all the rules policies etc are revised . this makes the progress even slower as for the foreign companies do not change their policies that often . either they quit or get interested in making their own money keeping in view the weak political situations .
Reza Phalvi thanks
Hope the country propers 
Re: Foreign Investment up by 137%
All money coming into Pakistan is very good for the economy. Pakistani banks need to be filled up to their necks so people can get finances for whatever projects they're interested in. No money means no projects.
Re: Foreign Investment up by 137%
where is it
Re: Foreign Investment up by 137%
it is in the personal accounts of the ruling authorities