ISLAMABAD: PTI-led government failed to attract investment from different countries, as overall foreign investment dropped significantly by 77 percent during the first half of the current fiscal year, July-December 2018.
The data of State Bank of Pakistan stated the net foreign investment reduced to $899 million in the period of July to December as compared with $3.95 billion. This was mainly due to outflows of investment from the stock market and the reduction of FDI inflows in different areas of service and industries.
Economic managers of PTI-led government have been working for attracting inflows of FDI soon after taking over and toured friendly countries for the purpose. They received a positive response from different countries but the FDI inflow yet to start.
Besides, the prevailing uncertainty due to PTI-led government confrontational policies and lack of clarity have kept the existing investors at bay, who adopted a wait and see policy for sustainable business expansion in Pakistan.
The overall FDI reduced by 19.2 percent to stand at $1.31 billion in the first half of 2018-19. The outflow of $419 million from equity securities or stock exchange offset these numbers to a significantly low level. The stock market continued to observe a bearish trend with huge losses as the confidence of investors and traders have not been restored over the government and its economic policies.
Foreign Portfolio Investment (FPI), on the other hand, saw an inflow of a mere $0.1 million as compared to $2.24 billion recorded last year.
It is hoped that FDI is likely to come in Pakistan once the government take a bold decision either to move to IMF or to build up its reserve enough to run the economy with the aid of friendly countries.
The mini-budget will spell out clearly the strategy of the government that will give a direction to investors and traders for the future.