Re: Moody’s investors Upgrades Pakistan Bond Ratings
Total FDI up by 105% in July-November
The total foreign investment in the country surged by 105 percent to $2.099 billion in July-November 2006-07 compared with only $1.023 billion received in the same period last year. The portfolio investment, which was slow since the beginning of the current fiscal year, started taking off in November, as the country received $623.8 million investment in the local bourses in the last five months of this fiscal, up by 130 percent compared with last year. In 2005-06, the country had received an amount of $270 million as portfolio investment. The direct investment, which was up by 200 percent in the first quarter of this fiscal, slowed down in October and November, but was still higher at $1.476 billion up around 96 percent compared with last year. Last year, the SBP received only $752 million against direct investment. According to the figure released by the State Bank of Pakistan (SBP) on Tuesday, the telecommunication sector received an amount of $410 million from the United Arab Emirates in November this year. Out of which $133.2 million are of the privatization proceeds.
However, big amounts of $393.7 million and $221 million have been received in the financial business, mining and quarrying, the data said. The portfolio investment in the local bourses sufficiently increased in the last two months, an analyst said, which are showing some improvement in the stock markets. However, in the month of December, this investment would be declining, he said. He said: **“The direct investment figures are encouraging for the country. The country has received an amount of $2.099 billion in the last five months, which shows that the government would easily achieve its FDI target of $4 billion for the current fiscal year.” During the outgoing fiscal year, the SBP had received total foreign investment of $3.872 billion. **The Privatization Commission has completed its first Global Depository Receipt (GDR) at the London Stock Exchange (LSE) by selling its share of around $812 million, which has not been included in the portfolio investment. Mohammad Imran, research head at First Capital and Securities, said: “It would be the highest-ever figure of direct investment. Last year the country had received an amount of $1.8 billion in the shape of privatization proceeds out of the total foreign investment of $3.872 received in 2005-06. Recently, the Privatization Commission announced that it would hold Global Depository Receipts (GDR) of the government’s holdings in National Bank of Pakistan, Habib Bank Limited, Allied Bank and the Oil and Gas Development Company Limited to raise foreign investment. The government has announced it would sell GDR on the London Stock Market by the end of this calendar year. Portfolio investment from the USA shot up to $303.1 million in July-Nov 2006-07 compared with $178.1 million in the same period last year. Major investment in the local bourses was from Singapore, which stood at $107.1 million in July-Nov 2006 compared with a withdrawal of $0.8 million in the same period last year. In direct investment, the European Union invested of $709.8 million in the last five months compared with only $150.7 million in the same period last year. The United Kingdom invested $640.4 million in the last five months, while such investment stood at $90.4 million in the same period last year.
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