sixthsense
Minister (2k+ posts)
Saturday, July 18, 2015 - Islamabad—The total investments in Pakistan have steadily improved in the last two years, jumping from $ 35.4 billion in 2013-14 to $ 38.3 billion in 2014-15. The total investments constitute 15.1 % of Pakistan’s GDP. The major reason for an increase in total investments in Pakistan last year was because of the major increase and contribution of domestic investments. The total investments include the domestic investments, portfolio investments and the foreign direct investments.
The foreign direct investment FDIs has a small contribution of 5% in the total investments every year. The total FDIs in the year 2014-15 remained at $ 2279 m as compared to the previous year’s figures of $2847.4 million. However, the net FDI dropped to $709 m in the last fiscal mainly because of an unprecedented outflow of foreign capital amounting $ 1570 m. as compared to $1149m last year 2013-14. This is the highest outflow in the last 10 years mainly because some major foreign companies in the telecommunications and financial services sectors this year had to make repayment of their foreign loans and some cement companies in Pakistan decided to set up cement units in Iraq and Africa. Exercising this option is in line with Pakistan’s liberal investment policy which provides for repatriation of capital and dividends and profits back to native country anytime by a foreign investor without any hindrance.
It is expected that anticipated large amount of investments in pipeline from China for the China Pakistan Economic Corridor project would improve the flow of FDIs in the current year. Last year also in 2014-15, large increase in domestic investment has adequately compensated the shortfall in FDIs.
http://pakobserver.net/detailnews.asp?id=268392
The foreign direct investment FDIs has a small contribution of 5% in the total investments every year. The total FDIs in the year 2014-15 remained at $ 2279 m as compared to the previous year’s figures of $2847.4 million. However, the net FDI dropped to $709 m in the last fiscal mainly because of an unprecedented outflow of foreign capital amounting $ 1570 m. as compared to $1149m last year 2013-14. This is the highest outflow in the last 10 years mainly because some major foreign companies in the telecommunications and financial services sectors this year had to make repayment of their foreign loans and some cement companies in Pakistan decided to set up cement units in Iraq and Africa. Exercising this option is in line with Pakistan’s liberal investment policy which provides for repatriation of capital and dividends and profits back to native country anytime by a foreign investor without any hindrance.
It is expected that anticipated large amount of investments in pipeline from China for the China Pakistan Economic Corridor project would improve the flow of FDIs in the current year. Last year also in 2014-15, large increase in domestic investment has adequately compensated the shortfall in FDIs.
http://pakobserver.net/detailnews.asp?id=268392
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