In order to understand, what a country’s future holds one must look at how much investment it is attracting at present, Pakistan has a chronic problem of lack of foreign investment since times immemorial due to plethora of reasons; military takeovers, lack of security, ease of doing business, corruption etc.
Recent years have seen a slight betterment in Net Foreign Investments in Pakistan. FY14 witnessed a huge upsurge in net investment in Pakistan as Sharif Administration was installed in Aiwan-e-Saddar, a total of 4,436.6 million of US$ was received as investment inflows during the year. However, the investments declined for next two consecutive fiscal years; 36% and 30% respectively.
Total Investments were up by 9 percent during the fiscal year 2017, with more than a 3250% decline in Total Foreign Investment.
According to data released by State Bank of Pakistan on September, 20th 2017, Total Foreign Investment in Pakistan increased by 37.1% or 81.6 million US$ (Absolute Value) during the first two months (July-Aug) of Fiscal Year of 2017.
Break-up of the total reveals a fantastic surge in direct private investment, up by 155% during the first two months of fiscal year 2017.
Meanwhile, portfolio investments have negative a steep negative decline since local markets have fallen prey to uncertain political conditions across the country. Pakistan witnessed a -358.3% downward trend in Equity securities.
Foreign Public Investment in equities witnessed a net selling trend, despite Pakistan being included in MSCI EM Index and FTSE ex Japan Asia Pacific Index in the last few months. The rising political instability and uncertainty in the political arenas of the country have foreign investors eyeing for other lucrative markets; as Pakistani markets continue to go down month on month in the year 2017.
Pakistan’s Total foreign investment during the first two months of July-Aug stood at 81.6 million US$, with total Foreign Private Investment clocking in at 131.2 million US$ and a net Foreign Public Investment of -49.5 million US$.