Foreign Investment

Pakistan is now the most investment-friendly nation in South Asia. Business regulations have been profoundly overhauled  foreign-investmentalong liberal lines, especially since 1999. Most barriers to the flow of capital and international direct investment have been removed. Foreign investors do not face any restrictions on the inflow of capital, and investment of up to 100% of equity participation is allowed in most sectors (local partners must be brought in within 5 years and contribute up to 40% of the equity in the services and agriculture sectors). Unlimited remittance of profits, dividends, service fees or capital is now the rule.

Business regulations are now among the most liberal in the region. This was confirmed by a World Bank report published in 2008 ranking Pakistan (at 76th) well ahead of neighbors like China (at 93rd), India (at 120th), Bangladesh (107th) and Sri Lanka (101th) based on ease of doing business.  The ranking is based on 10 indicators of business regulation that follows the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure.

The tables below also negate arguments by those that accuse Pakistan of raising foreign investment by selling off state assets.  Fact is that only $6 billion were raised by selling state assets in the past 15 years. (News)

 

 

View Detailed (Country wise and Sector wise) Facts & Figures below. Keep reading

 

 

 

 

 

Foreign Investment inflows in Pakistan (Million $)

 

Year 

Greenfield Investment 

Privatization Proceeds 

Total FDI 

Private

Public

Total

Portfolio

Portfolio

Foreign

Investment 

Investment 

Investment 

2001-02 

357

128

485

-10

-483

-8.4

2002-03 

622

176

798

22

-261

559.1

2003-04 

750

199

949

-28

339

1,260.70

2004-05 

1,161

363

1,524.00

153

458

2,134.60

2005-06 

1,981

1,540

3,521.00

351

613

4,485.00

2006-07 

4,873.20

266

5,139.60

1,820

1,468.30

8,428.20

2007-08

5,019.60

133.2

5,152.80

19.3

20.8

5,193.00

2008-09

754.1

754.1

-109.3

-1.6

643.18

(July-August)

Total 

15,517.90

2,805.20

18,323.50

2,218.00

2,153.50

22,695.38

 

 

 

 

 

 

 

 

Country Wise FDI Inflows (Million $)

 

 

 

 

 

 

Million $

Country

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09
(July-August)

USA

92.7

326.4

211.5

238.4

325.9

516.7

913.1

1,309.3

126.2

UK

90.5

30.3

219.4

64.6

181.5

244.0

860.1

460.2

44.4

U.A.E

5.2

21.5

119.7

134.6

367.5

1,424.5

661.5

588.6

(28.4)

Japan

9.1

6.4

14.1

15.1

45.2

57.0

64.4

131.2

14.4

Hong Kong

3.6

2.8

5.6

6.3

32.3

24.0

32.6

339.8

33.9

Switzerland

3.6

7.4

3.1

205.3

137.5

170.6

174.7

169.3

28.0

Saudi Arabia

56.6

1.3

43.5

7.2

18.4

277.8

103.5

46.2

6.2

Germany

15.5

11.2

3.7

7.0

13.1

28.6

78.9

69.6

7.0

Korea (South)

3.7

0.4

0.2

1.0

1.4

1.6

1.5

1.2

0.2

Norway

41.9

0.1

0.3

146.6

31.4

252.6

25.1

275.0

50.2

China

0.3

3.0

14.3

0.4

1.7

712.0

13.7

0.5

Others

76.6

173.9

108.6

369.3

521.9

1,512.2

1,748.7

471.5

Total

322.4

484.7

798.0

949.0

1523.9

3521.0

5139.6

5,152.8

754.1

Privatization Proceeds

127.4

176.0

198.8

363.0

1540.3

266.4

133.2

0

FDI Excluding Pvt. Proceeds

322.4

357.3

622.0

750.2

1,160.9

1,980.7

4,873.2

5,019.6

754.1

 

 

Sector Wise FDI Inflows (Million $)

 

 

 

 

 

 

Million $

Sector

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09
(July-August)

Oil & Gas 

80.7

268.2

186.8

202.4

193.8

312.7

545.1

634.8

78.6

Financial Business

(34.9)

3.6

207.4

242.1

269.4

329.2

930.3

1,607.6

189.3

Textiles

4.6

18.5

26.1

35.4

39.3

47.0

59.4

30.1

4.5

Trade

13.2

34.2

39.1

35.6

52.1

118.0

172.1

175.5

26.4

Construction

12.5

12.8

17.6

32.0

42.7

89.5

157.1

88.5

6.9

Power

39.9

36.4

32.8

(14.2)

73.4

320.6

193.4

70.3

34.1

Chemical

20.3

10.6

86.1

15.3

51.0

62.9

46.1

78.0

7.4

Transport

45.2

21.4

87.4

8.8

10.6

18.4

30.2

73.0

7.4

Communication (IT & Telecom)

NA

12.8

24.3

221.9

517.6

1,937.7

1,898.7

1,625.3

251.8

Others

140.9

66.2

90.4

170.1

274.0

285.0

1,107.2

769.7

147.7

Total

322.4

484.7

798.0

949.4

1,523.9

3,521.0

5,139.6

5,152.8

754.1

Privatization Proceeds

127.4

176.0

198.8

363.0

1,540.3

266.4

133.2

0.0

FDI Excluding Pvt. Proceeds

322.4

357.3

622.0

750.6

1160.9

1980.7

4873.2

5,019.6

754.1

 

 
 

 

 

 

 

 

 

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2 Comments

Filed under Investment, Pakistan Economy, Statistics & Indicators

2 responses to “Foreign Investment

  1. Najam Zaman

    This remains a fact that countries start circulating progress on basis of foreign investment and foreign help of technology, and when their own revenue generation starts to contribute they can benefit both ways. The website is very pleasant. Add more sectors to it.

  2. Almas Richard Ford

    This is my first visit of this site but I am so involved in reading the articles. It is very good site to keep in touch with the latest trends and economic activities going on in Pakistan.

    Almas Richard Ford
    M-Phil Eco

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