FDI drops 52% as economic uncertainty bites

RajaRawal111

Prime Minister (20k+ posts)
imran-khan.jpg


Foreign direct investment (FDI) dropped 52% to $1.37 billion in first 10 months (Jul-Apr) of the current fiscal year due to spread of economic uncertainty.


The FDI had been recorded at $2.84 billion in the same period of previous year, the State Bank of Pakistan (SBP) reported on Tuesday.

“Economic uncertainty prompted foreign firms to put their investment decisions on hold for the time being,” Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General M Abdul Aleem said while talking to The Express Tribune. A long delay in finalising terms and conditions of an International Monetary Fund (IMF) loan programme worth $6 billion caused a deep economic uncertainty as Pakistan faced a major balance of payments challenge.

However, the government has now finally entered into the IMF loan programme. “This should restore confidence of international investors in Pakistan’s economy,” he said.

Economy gets direction

Aleem said the much-awaited clarity on the economic front had started emerging after the central bank let the rupee depreciate and increased the key benchmark interest rate in the past three to four days.

The economic uncertainty had also led to a slowdown in investment from the largest foreign investor – China. “Pakistan is expected to witness an increase in China’s investment under the banner of China-Pakistan Economic Corridor (CPEC) after Prime Minster Imran Khan paid a visit to Beijing recently,” he voiced hope.

Foreigners were also expected to initiate new projects in Pakistan in different sectors including LNG import terminals, chemicals, telecoms and automobile, he said.


001-1558494118.jpg


“Foreign investors have never lost hope in Pakistan, which remains a big promising market,” he said, adding “the timing of new investment projects has changed due to delay in clarity on the economic front.”

Cumulative investment turns negative

The overall foreign investment, including the FDI and investment in Pakistan’s stock and debt markets, turned negative for the first time in the current fiscal year.

Foreign direct investment plunges 51.5% to $1.3 billion

Pakistan recorded a net outflow of $22.6 million in the first 10 months under the head of foreign investment compared to a net inflow of $5.16 billion in the same period of last year. The foreign investment turned negative after Pakistan paid $1 billion for the matured Eurobond some time ago.

On the contrary, the country sold Eurobonds worth $2.5 billion in the same period of last year.

Apart from that, foreign investors accelerated the sale of shares at the Pakistan Stock Exchange during the period under review. Foreign portfolio investors divested $408 million in the first 10 months of FY19 compared to divestment of $136 million in the same period of previous year.

Country-wise FDI

China was the largest foreign direct investor in Pakistan as it invested $429 million in the first 10 months of FY19. This was, however, one-fourth of the total investment of $1.72 billion it made in the same period of last year.

The United Kingdom emerged as the second biggest investor as it invested $159.9 million compared to investment of $265 million in the same period of last year.

Hong Kong emerged as the third largest investor with investment of $132.7 million compared to $145.4 million in the corresponding period of last year.

Malta divested a net $116.6 million in the 10 months compared to no investment/divestment in the same period of last year.

Sector-wise FDI

The construction sector attracted the largest investment of $386.8 million in the first 10 months of FY19 compared to $562.7 million in the same period of last year.

The financial business sector invited the second largest foreign investment worth $256.6 million compared to $383.4 million last year.

On the contrary, coal power projects recorded a net outflow of $459.8 million compared to inflow of $663.4 million last year.

Telecommunications recorded an outflow of $162.1 million compared to outflow of $11.7 million last year.

Published in The Express Tribune, May 22nd, 2019.

 

RajaRawal111

Prime Minister (20k+ posts)
انصافیو --- دیکھو تم لوگوں نے تھوڑا سا ناچنا بند کیا ہے تو کیا ہونے لگ گیا ہے
چلو "آے گا عمران" والا گانا لگاو اور ناچنا شروع کرو تا کہ ایف ڈی آئ واپس آے
اگر نہیں پتا ایف ڈی آئ کیا ہوتی ہے پھر بھی ناچو - چلو
 

3rd_Umpire

Chief Minister (5k+ posts)
انصافیو --- دیکھو تم لوگوں نے تھوڑا سا ناچنا بند کیا ہے تو کیا ہونے لگ گیا ہے
چلو "آے گا عمران" والا گانا لگاو اور ناچنا شروع کرو تا کہ ایف ڈی آئ واپس آے
اگر نہیں پتا ایف ڈی آئ کیا ہوتی ہے پھر بھی ناچو - چلو
لگتا ھے مریم رنڈی نے تم جیسے حرامجادے پٹواریوں
کے حصے کی روح افزا مجاوروں کو دینا شروع کر دیا
اور تم جیسے حرامجادے روح افزا کے لئے
شاھی محلے میں مارے مارے پھر رہے ھیں


50068146_998378547039662_2270916945047977984_n.jpg
 

RajaRawal111

Prime Minister (20k+ posts)
لگتا ھے مریم رنڈی نے تم جیسے حرامجادے پٹواریوں
کے حصے کی روح افزا مجاوروں کو دینا شروع کر دیا
اور تم جیسے حرامجادے روح افزا کے لئے
شاھی محلے میں مارے مارے پھر رہے ھیں


50068146_998378547039662_2270916945047977984_n.jpg
200.webp
 

Dr Adam

Prime Minister (20k+ posts)
راجے فیر مبارکاں ہون تینوں

پُتر ٹھول وجاء تے پَیلاں پاء ، تے بنیئے نِیاں جُتیاں چائی کے سِرا اَپر جُتیاں

کھان نی تیاری پَھڑ . تُوں نَئیں سُدرن والا

?......آزادی تَینُوں راس اِی نَئیں​



imran-khan.jpg


Foreign direct investment (FDI) dropped 52% to $1.37 billion in first 10 months (Jul-Apr) of the current fiscal year due to spread of economic uncertainty.


The FDI had been recorded at $2.84 billion in the same period of previous year, the State Bank of Pakistan (SBP) reported on Tuesday.

“Economic uncertainty prompted foreign firms to put their investment decisions on hold for the time being,” Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General M Abdul Aleem said while talking to The Express Tribune. A long delay in finalising terms and conditions of an International Monetary Fund (IMF) loan programme worth $6 billion caused a deep economic uncertainty as Pakistan faced a major balance of payments challenge.

However, the government has now finally entered into the IMF loan programme. “This should restore confidence of international investors in Pakistan’s economy,” he said.

Economy gets direction

Aleem said the much-awaited clarity on the economic front had started emerging after the central bank let the rupee depreciate and increased the key benchmark interest rate in the past three to four days.

The economic uncertainty had also led to a slowdown in investment from the largest foreign investor – China. “Pakistan is expected to witness an increase in China’s investment under the banner of China-Pakistan Economic Corridor (CPEC) after Prime Minster Imran Khan paid a visit to Beijing recently,” he voiced hope.

Foreigners were also expected to initiate new projects in Pakistan in different sectors including LNG import terminals, chemicals, telecoms and automobile, he said.


001-1558494118.jpg


“Foreign investors have never lost hope in Pakistan, which remains a big promising market,” he said, adding “the timing of new investment projects has changed due to delay in clarity on the economic front.”

Cumulative investment turns negative

The overall foreign investment, including the FDI and investment in Pakistan’s stock and debt markets, turned negative for the first time in the current fiscal year.

Foreign direct investment plunges 51.5% to $1.3 billion

Pakistan recorded a net outflow of $22.6 million in the first 10 months under the head of foreign investment compared to a net inflow of $5.16 billion in the same period of last year. The foreign investment turned negative after Pakistan paid $1 billion for the matured Eurobond some time ago.

On the contrary, the country sold Eurobonds worth $2.5 billion in the same period of last year.

Apart from that, foreign investors accelerated the sale of shares at the Pakistan Stock Exchange during the period under review. Foreign portfolio investors divested $408 million in the first 10 months of FY19 compared to divestment of $136 million in the same period of previous year.

Country-wise FDI

China was the largest foreign direct investor in Pakistan as it invested $429 million in the first 10 months of FY19. This was, however, one-fourth of the total investment of $1.72 billion it made in the same period of last year.

The United Kingdom emerged as the second biggest investor as it invested $159.9 million compared to investment of $265 million in the same period of last year.

Hong Kong emerged as the third largest investor with investment of $132.7 million compared to $145.4 million in the corresponding period of last year.

Malta divested a net $116.6 million in the 10 months compared to no investment/divestment in the same period of last year.

Sector-wise FDI

The construction sector attracted the largest investment of $386.8 million in the first 10 months of FY19 compared to $562.7 million in the same period of last year.

The financial business sector invited the second largest foreign investment worth $256.6 million compared to $383.4 million last year.

On the contrary, coal power projects recorded a net outflow of $459.8 million compared to inflow of $663.4 million last year.

Telecommunications recorded an outflow of $162.1 million compared to outflow of $11.7 million last year.

Published in The Express Tribune, May 22nd, 2019.

 

Dr Adam

Prime Minister (20k+ posts)
لگتا ھے مریم رنڈی نے تم جیسے حرامجادے پٹواریوں
کے حصے کی روح افزا مجاوروں کو دینا شروع کر دیا
اور تم جیسے حرامجادے روح افزا کے لئے
شاھی محلے میں مارے مارے پھر رہے ھیں


50068146_998378547039662_2270916945047977984_n.jpg




او نئیں یار راجہ پڑھا لکھا پٹواری ہے لیکن دل کا بُرا نہیں

اس طرح نہ کیا کرو اسکے ساتھ​
 

mhafeez

Chief Minister (5k+ posts)
لگتا ھے مریم رنڈی نے تم جیسے حرامجادے پٹواریوں
کے حصے کی روح افزا مجاوروں کو دینا شروع کر دیا
اور تم جیسے حرامجادے روح افزا کے لئے
شاھی محلے میں مارے مارے پھر رہے ھیں

50068146_998378547039662_2270916945047977984_n.jpg


ایف ڈی آئ آدھی رہ گئی ہے اور تمہارا تاثر یہ ہے؟؟ شاباش اوپر سے نیچے تک تم سب لوگ فارغ ہو ، پتہ نہیں ، کن جاہلوں سے واسطہ پڑ گیا ہے
 

insouciant

Minister (2k+ posts)
Between, it's the right response for the uneducated who have posted this thread without even understanding what it shows and what a fool he is making of himself!

So do you suggest us to start installing new Power Plants just to make commission and show we are getting FDI against it? Even though we don't need one! or How about let's build an orange train in Multan too?? Sorry that won't work! I forgot you don't get FDI for subsidized lossy projects. For them you have to pay loans from your local budget! ??

This is a new government! It'll determine it's priorities and needs and then draft its investment policy and invite FDI against specific projects accordingly! You don't have to be an Einstein to know this basic fact! A matter of concern would have been that we want to install a Refinery but Saudia is saying it won't invest like it outrightly told that to Nawaz Lohar! Or we want investment in Agri sector but China refused to invest next year (which it has agreed as well) Or we are not getting funding for ML1 that we want to build (which we were not for the last fucking 10 years!!! ).. So on and so..

I don't know kin jahil patwarion se paala par gaya hai who don't even understand basics of project finance and investment policies! ??

ایف ڈی آئ آدھی رہ گئی ہے اور تمہارا تاثر یہ ہے؟؟ شاباش اوپر سے نیچے تک تم سب لوگ فارغ ہو ، پتہ نہیں ، کن جاہلوں سے واسطہ پڑ گیا ہے
 

mhafeez

Chief Minister (5k+ posts)
Between, it's the right response for the uneducated who have posted this thread without even understanding what it shows and what a fool he is making of himself!

So do you suggest us to start installing new Power Plants just to make commission and show we are getting FDI against it? Even though we don't need one! or How about let's build an orange train in Multan too?? Sorry that won't work! I forgot you don't get FDI for subsidized lossy projects. For them you have to pay loans from your local budget! ??

This is a new government! It'll determine it's priorities and needs and then draft its investment policy and invite FDI against specific projects accordingly! You don't have to be an Einstein to know this basic fact! A matter of concern would have been that we want to install a Refinery but Saudia is saying it won't invest like it outrightly told that to Nawaz Lohar! Or we want investment in Agri sector but China refused to invest next year (which it has agreed as well) Or we are not getting funding for ML1 that we want to build (which we were not for the last fucking 10 years!!! ).. So on and so..

I don't know kin jahil patwarion se paala par gaya hai who don't even understand basics of project finance and investment policies! ??

بجلی کے کارخانے اس وقت کی ضرورت تھی ، اسی طرح انفراسٹرکچر بہتر کئے بغیر کوئی ملک ترقی نہیں کرسکتا ، ایم ایل ون کا معاہدہ نواز حکومت کے دوران ہوگیا تھا بلکہ پیپرورک بھی مکمل ہوگیا تھا ، امن وامان کی صورتحال ٢٠١٣ سے بہت بہتر ہوگئی ہے اب ملک ٹیک آف کی پوزیشن میں تھا اس حکومت نے سب ڈبو دیا
 

insouciant

Minister (2k+ posts)
This is all what you have to say?

Bilkul, Mulk bas take-off ki position mei tha! With 2 weeks of import bill remaining in reserves!

Bas Mulk take-off krne wala hi tha with us running $2 Billion/month of current account deficit.

Bas Mulk take-off kr hi gaya tha with $30 Billion loan maturing in next 3 yrs and 0$ in the account to pay it off!

Read ADB report on Power Plants. We had ZERO need of Power Plants!! ZERO!!!!!!! But we needed transmission lines as they were our bottle neck. But we build plants for our comissions and now we are making them capacity payments which is 100% loss!

Bas Mulk Take-off kr gaya tha ???

ML1 ka agreement hogya tha but chinese ne kaha Khan se phir se krna hai!? Kyun k hum chinese ek agreement bar bar sign krte hein!

Mein bhi kehta tha BC kon khotay hein jo in ganjon ki baaton mei aajaataye hai! Bhai aaj aap se baat kr k jawaab mil gaya! Bas Mulk Take-off kr gaya tha!! ? ? ? ?

Thank you for making my day!!! I never laughed so hard this week! Bas MULk take-off kar gya tha! Buahahahhahaa ? ? ?

Bhai apni jaan pe aur hamaraye pe ek ehsaan karo, ya tou kisi achaye school mei admission le k degree le lo taa k sochne samajhne ki salahiat aajaye. Ya jin cheezo ka nai pata unmei ghusna chor do! Ya comedy krna shuru krdo!
Bas Mulk Take-off kr gaya tha!! ? ? ? ?



بجلی کے کارخانے اس وقت کی ضرورت تھی ، اسی طرح انفراسٹرکچر بہتر کئے بغیر کوئی ملک ترقی نہیں کرسکتا ، ایم ایل ون کا معاہدہ نواز حکومت کے دوران ہوگیا تھا بلکہ پیپرورک بھی مکمل ہوگیا تھا ، امن وامان کی صورتحال ٢٠١٣ سے بہت بہتر ہوگئی ہے اب ملک ٹیک آف کی پوزیشن میں تھا اس حکومت نے سب ڈبو دیا
 

Abdul Allah

Minister (2k+ posts)
بجلی کے کارخانے اس وقت کی ضرورت تھی ، اسی طرح انفراسٹرکچر بہتر کئے بغیر کوئی ملک ترقی نہیں کرسکتا ، ایم ایل ون کا معاہدہ نواز حکومت کے دوران ہوگیا تھا بلکہ پیپرورک بھی مکمل ہوگیا تھا ، امن وامان کی صورتحال ٢٠١٣ سے بہت بہتر ہوگئی ہے اب ملک ٹیک آف کی پوزیشن میں تھا اس حکومت نے سب ڈبو دیا

Kindly list

Is Hakoomat k kin kaamoon ki waja sy "SUB DOOB GYA"

Is Hakoomat ki konsi policy ki waja sy "SUB DOOB Gaya"

Is Hakommat k kis decision ny sub Dobo dia
 

mhafeez

Chief Minister (5k+ posts)
This is all what you have to say?

Bilkul, Mulk bas take-off ki position mei tha! With 2 weeks of import bill remaining in reserves!

Bas Mulk take-off krne wala hi tha with us running $2 Billion/month of current account deficit.

Bas Mulk take-off kr hi gaya tha with $30 Billion loan maturing in next 3 yrs and 0$ in the account to pay it off!

Read ADB report on Power Plants. We had ZERO need of Power Plants!! ZERO!!!!!!! But we needed transmission lines as they were our bottle neck. But we build plants for our comissions and now we are making them capacity payments which is 100% loss!

Bas Mulk Take-off kr gaya tha ???

ML1 ka agreement hogya tha but chinese ne kaha Khan se phir se krna hai!? Kyun k hum chinese ek agreement bar bar sign krte hein!

Mein bhi kehta tha BC kon khotay hein jo in ganjon ki baaton mei aajaataye hai! Bhai aaj aap se baat kr k jawaab mil gaya! Bas Mulk Take-off kr gaya tha!! ? ? ? ?

Thank you for making my day!!! I never laughed so hard this week! Bas MULk take-off kar gya tha! Buahahahhahaa ? ? ?

Bhai apni jaan pe aur hamaraye pe ek ehsaan karo, ya tou kisi achaye school mei admission le k degree le lo taa k sochne samajhne ki salahiat aajaye. Ya jin cheezo ka nai pata unmei ghusna chor do! Ya comedy krna shuru krdo!
Bas Mulk Take-off kr gaya tha!! ? ? ? ?

کتنا جھوٹ بولتے ہو یار؟؟

Overall, liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $16,406.8 million. Net reserves held by banks amounted to $6,373 million on 31 May 2018 the last day of PMLN tenure. 16 billion+ dollars required for two weeks of import bill??
Source
 

mhafeez

Chief Minister (5k+ posts)
Kindly list

Is Hakoomat k kin kaamoon ki waja sy "SUB DOOB GYA"

Is Hakoomat ki konsi policy ki waja sy "SUB DOOB Gaya"

Is Hakommat k kis decision ny sub Dobo dia

اس حکومت نے ڈویلپمنٹ پراجیکٹس پر کام ڈیڈ سلو کردیا
اس حکومت نے ریکارڈ تیزی سے قرضے لئے
اس حکومت نے جی ڈی پی کے حساب سے ریکارڈ کم ٹیکس اکٹھا کیا
اس حکومت نے ریکارڈ تیزی سے شرح سود میں اضافہ کیا
اس حکومت نے ریکارڈ تیزی سے مہنگائی میں اضافہ کیا
اس حکومت نے ریکارڈ تیزی سے روپے کی قدر گرائی

اور کتنا سناؤں؟؟
 

Will_Bite

Prime Minister (20k+ posts)
؟ شاباش اوپر سے نیچے تک تم سب لوگ فارغ ہو ، پتہ نہیں ، کن جاہلوں سے واسطہ پڑگیا ہے

Dont talk about Raja like that. hes your colleague after all.

If folks like you start using some common sense instead of parroting rubbish floated by your peers/politiicans, you would understand whats happening.

Noones pretending the economy is booming. Everyone knows there is a downturn. And the reason si plain and simple. A massive current account deficit left behind by a fraudster left Pakistan with little choices. Tough love is the only way to go, instead of trying to use patchwork to fix this leak for 5 minutes before it pops up again.
There will be 2-3 years of hardship before the economy stabilizes. We have lived through decades of hell with Sharfs and Zardaris. 2-3 years is nothing compared to that.

There is a silver lining to this cloud. Current account deficit decreased by more than 25% last month...Imports decreased. This is good, because we had become heavily dollar reliant.

Rest assured, economy is in clean hands...not in the hands of someone who is building properties in London and Paris.
 

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