South Asian Business news and information

The News reports:

Israr Khan from Islamabad adds: Experts believe that it was the political turbulence and prevailing judiciary crisis that brought foreign investment in the country to earth. Pakistan is a place where the profit ratio is high compared to other countries of the region and various countries and business tycoons are interested to invest here but they are hesitant because of political turbulence and judiciary crisis, a well-placed official told The News.

Foreign public portfolio investment declined by 97.4 per cent to $16.8 million against $653.4 million recorded in corresponding period of the last fiscal.

According to the break-up of investment by region, developed countries’ investment in Pakistan declined by 28.7 per cent to $2.68 billion (including FDI $2.437 billion and portfolio investment of $240.2 million). Developing economies investment declined by 38.6 per cent to $930 million (FDI $1.13 billion while $201 million portfolio investment was withdrawn).

Last month, Pakistan government blamed the multinational companies for its product price hike. The government said that the economic condition of the country was far better than before.   

Pakistan just observed the establishment of its first government. The country is already burdened with huge foreign outstanding loan. Now, this decline of foreign investment will be a big blow to its economical growth. Pakistan government should give serious efforts in attracting foreign investors and try to create a better investment environment.

Related articles:
The News

South Asia Biz (1)

South Asia Biz (2)