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China leads as FDI in Pakistan soars to 30-month high at $487m (lot of good news media busy in spreading negativity)

Imran the legend

Chief Minister (5k+ posts)
Improvement in data shows return of foreign investors’ confidence in economy

KARACHI: Long-term foreign investors have finally staged a much-awaited comeback in different sectors of the economy, like power and telecommunication, following clarity in the government’s economic policies.

Foreign direct investment (FDI) hit a two-and-a-half-year high at $487 million in December 2019. This comes to over one-third of the total FDI inflow of $1.34 billion in the first six months (Jul-Dec) of the current fiscal year 2019-20, the State Bank of Pakistan (SBP) reported on Thursday.

“FDI has remained consecutively (on a month-on-month basis) high. This shows the return of foreign investors’ confidence in the domestic economy,” Arif Habib Limited Head of Research Samiullah Tariq told The Express Tribune.

A noteworthy development is that it was not only China, which has made a multi-year high investment of $328.3 million during the month, but many other countries have also poured in comparatively and historically higher investment. These include Hong Kong, Hungary, Japan, South Korea, Malta, the Netherlands and United Kingdom.

The revival in long-term investment is seen after short-term foreign portfolio investors poured a significant $1.67 billion into debt instruments like T-bills and Pakistan Investment Bonds (PIBs) in the first seven months (Jul-Jan) of the current fiscal year 2019-20. Besides, the short-term investors have slowed down sale of shares at the Pakistan Stock Exchange (PSX) following aggressive selling of stocks in the past four years.

FDI increased over 52% to $487 million in December compared to $319.5 million in the same month of last year, the SBP said.

Cumulatively, in first six months of the current fiscal year, the foreign investment soared 68% to $1.34 billion compared to $796.8 million in the same period of last fiscal year, it added.

The improving FDI numbers on a month-on-month basis have suggested “it (FDI) would maintain upward movement in the months to come,” Tariq said.

The long-term foreign investors have gradually gained confidence in the domestic economy “partly due to clarity about the currency,” he said.

The rupee-dollar exchange rate has remained stable-to-positive since July 2019 compared to high volatility and over 52% depreciation of the rupee against the US dollar in the prior 18-month period.

“The improvement in currency encouraged foreign firms to make pending investment. For example, the mobile phone service providing companies have paid licence renewable fee (with a lag) as they expected no major currency (rupee) depreciation in the near future,” the analyst added.

Pakistan’s foreign currency reserves have surged 58% since June 2019 to over a 21-month high at $11.58 billion on January 10, 2020. The reserves have maintained the uptrend despite the country successfully paid off over $4 billion debt, including interest payment, since July 2019, he said. “This means foreign inflows have remained significantly high in the country (since July) and helped in gaining foreign investors’ confidence in the domestic economy,” he said.

As soon as more clarity on the government’s economic policies would come, the environment for foreign investment would improve further. For example, the clarity in telecom policy attracted the license renewable fees from telecom operators. “Similarly, the clarity on new petroleum policy is gradually emanating. This should see improved foreign investment in petroleum industry going forward,” he said.

Country-wise FDI

China has once again emerged as the single largest investor in Pakistan in December, as it poured $328.3 million in December. This was followed by Hong Kong with $32.7 million, Japan $29.1 million, Malta $18.5 million, South Korea $15 million, the Netherlands $14 million and United Kingdom invested $10.2 million in the month.

Cumulatively in the first half (Jul-Dec) of the current fiscal year, China invested a net $422.5 million compared to $217.1 million in the same period of last year. Norway invested $288.5 million compared to a divestment worth $9.1 million. Malta invested $111.1 million compared to an outflow of $70 million in the same six-month of last year.
Source
 
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Nadir Bashir

Minister (2k+ posts)
A lot of people want Pakistan hanging in economic disaster for their personal gains.
No economy can be built in one and half year. At least country needs 15 years with consistant policies to benefit the masses.
Now where government is not doing good? Technically you can not blame a government when you put 342 dacoits in an assembly and hold responsible to just few persons.

Government shall work on two strategies 1. Short term 2. Long term
Masses can only be satisfied with short term actions which can be,

1. Benazir Income support programme shall be used for creating jobs in the private sector and bringing in industry with products which we are still importing.

2. Benazir Income support programme having money worth of 121 billion rupees shall be used provide source of income such as heavy loaders, trucks, tractors etc to the under developed areas such as in Baluchistan etc

3. Industrialization is very important but by mistake of our planners, we are growing industry in the agriculture lands which is a shameful act. We have a lot land available in semi desert areas, industries must be shifted there to save agricultural land.

4. A lot of people are busy on daily basis to blame everything to the Government for price hike, for bribe but i should additional bribe, such officials and government employees must be made an example for the generations to come. No less than hanging.

5. A nation wide campaign shall be started to clear all villages, towns and cities from drugs. Even with this move, Government can serve the whole nation since millions of families are in trouble due to easy access of drugs.

6. Police need reforms and i am sorry to say but Government has done nothing. Police has become a disease, so its the time to get rid of this disease. Police should be handed over to army for some period to bring discipline and accountability.

7. All social media platforms shall be used only for communication with family and friends. Any political communication based on hatred shall be stopped.

8. ................

9..................
 

Okara

Chief Minister (5k+ posts)
Improvement in data shows return of foreign investors’ confidence in economy

KARACHI: Long-term foreign investors have finally staged a much-awaited comeback in different sectors of the economy, like power and telecommunication, following clarity in the government’s economic policies.

Foreign direct investment (FDI) hit a two-and-a-half-year high at $487 million in December 2019. This comes to over one-third of the total FDI inflow of $1.34 billion in the first six months (Jul-Dec) of the current fiscal year 2019-20, the State Bank of Pakistan (SBP) reported on Thursday.

“FDI has remained consecutively (on a month-on-month basis) high. This shows the return of foreign investors’ confidence in the domestic economy,” Arif Habib Limited Head of Research Samiullah Tariq told The Express Tribune.

A noteworthy development is that it was not only China, which has made a multi-year high investment of $328.3 million during the month, but many other countries have also poured in comparatively and historically higher investment. These include Hong Kong, Hungary, Japan, South Korea, Malta, the Netherlands and United Kingdom.

The revival in long-term investment is seen after short-term foreign portfolio investors poured a significant $1.67 billion into debt instruments like T-bills and Pakistan Investment Bonds (PIBs) in the first seven months (Jul-Jan) of the current fiscal year 2019-20. Besides, the short-term investors have slowed down sale of shares at the Pakistan Stock Exchange (PSX) following aggressive selling of stocks in the past four years.

FDI increased over 52% to $487 million in December compared to $319.5 million in the same month of last year, the SBP said.

Cumulatively, in first six months of the current fiscal year, the foreign investment soared 68% to $1.34 billion compared to $796.8 million in the same period of last fiscal year, it added.

The improving FDI numbers on a month-on-month basis have suggested “it (FDI) would maintain upward movement in the months to come,” Tariq said.

The long-term foreign investors have gradually gained confidence in the domestic economy “partly due to clarity about the currency,” he said.

The rupee-dollar exchange rate has remained stable-to-positive since July 2019 compared to high volatility and over 52% depreciation of the rupee against the US dollar in the prior 18-month period.

“The improvement in currency encouraged foreign firms to make pending investment. For example, the mobile phone service providing companies have paid licence renewable fee (with a lag) as they expected no major currency (rupee) depreciation in the near future,” the analyst added.

Pakistan’s foreign currency reserves have surged 58% since June 2019 to over a 21-month high at $11.58 billion on January 10, 2020. The reserves have maintained the uptrend despite the country successfully paid off over $4 billion debt, including interest payment, since July 2019, he said. “This means foreign inflows have remained significantly high in the country (since July) and helped in gaining foreign investors’ confidence in the domestic economy,” he said.

As soon as more clarity on the government’s economic policies would come, the environment for foreign investment would improve further. For example, the clarity in telecom policy attracted the license renewable fees from telecom operators. “Similarly, the clarity on new petroleum policy is gradually emanating. This should see improved foreign investment in petroleum industry going forward,” he said.

Country-wise FDI

China has once again emerged as the single largest investor in Pakistan in December, as it poured $328.3 million in December. This was followed by Hong Kong with $32.7 million, Japan $29.1 million, Malta $18.5 million, South Korea $15 million, the Netherlands $14 million and United Kingdom invested $10.2 million in the month.

Cumulatively in the first half (Jul-Dec) of the current fiscal year, China invested a net $422.5 million compared to $217.1 million in the same period of last year. Norway invested $288.5 million compared to a divestment worth $9.1 million. Malta invested $111.1 million compared to an outflow of $70 million in the same six-month of last year.
Source
Can u share such news from state bank or official sources?
Rajarawal111 used to share such news from newspaper sources and if those news were correct we might be a developed country.
 

Ratan

Minister (2k+ posts)
The beginning of the Good Days....
Outstanding achievements for a govt who is one & half year old, who inherited an economy almost at the edge of 'bankruptcy'...a financial 'Minefield' deliberately planted by PMLN's Miftah Ismail & Ishaq Daar...
Well done...Lage Raho...PTI..financial team.
✌
 

Citizen X

Prime Minister (20k+ posts)
Can u share such news from state bank or official sources?
Why your google is broken? The sources are mentioned in the article, you can look them up yourself. How hard can it be to type State Bank Of Pakistan Fiscal report 2019-2020 in any search engine
 

islamabadi

Minister (2k+ posts)
487 million dollar lekar naacho.....it reached a recod 1,250 million in December 2008....not impressed. Stock market has reached 42,000? It had passed 53,000 YEARS ago....choti moti chalaakion mein khush hotey raho
 

Senorita

MPA (400+ posts)

TheYouth2

Councller (250+ posts)
dollars are pouring into Pakistan because we have currently the highest interest rates in the world...

these interest rates can not be sustained over a longer period of time

the moment intesrst rates are lowerd, all dollar inflow will evaporate and our crack head PM will get the news of crashing economy through
Daily Jang ........DAMN !


Citizen X
Imran the legend

ualis, miafridi, iltaf and 3 others
pti 56, iltaf, Ratan and 1 other person
Renegade, iltaf and Ratan
Where are stolen dollars of Nalaiq Najaiz Nikkami Nikhatoo Nonsense League?
 

Zainsha

Minister (2k+ posts)
dollar will evaporate jaisay ganja khandaan evaporate ho gaya..

unn kay pillay reh gaye idher.. zaban say chaat chaat kar boot ko izzat denay kay liyay
 
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