They said despite the fact foreign investment is one of main sources to build up the country''s foreign exchange reserves, it is on decline for last few years. Although the federal government has already announced a liberal policy for foreign investors, which allows foreign investors to repatriate 100 percent profit and dividend earned on investment in Pakistan.
The State Bank of Pakistan on Friday revealed that with a decline of 27.1 percent or $113.7 million, FDI fell to $305.6 million during July-November of FY13 compared to $419.3 million in corresponding period of last fiscal year. During the period under review, portfolio investment witnessed upward trend while, FDI continues to decline.
However, the second component of foreign private investment ie portfolio investment posted a positive trend and attracted $144.8 million investment in first five months of current fiscal year against $81 million outflow in the same period of last fiscal year.
Overall foreign private investment, comprising foreign direct investment and portfolio investment, increased by some 33 percent during July-November of FY13 owing to some improvement in portfolio investment. Inflows of foreign private investment in Pakistan surged to $450.4 million in July-November of FY13 compared to $338.3 million in the corresponding period of last fiscal year, depicting an increase of $112.1 million.