Business

FDI shrinks by 59% to $461m in first six months of FY 2023

Published

1 year ago

Farwa

Financial sector fetches $176 million in FDI from global investors.
Investment in power sector falls to $237 million from $345 million.
Pakistan among least desired moneymaking markets for investors due to ‘deteriorating’ economy.

KARACHI: Pakistan’s foreign direct investment (FDI) shrank by 59% to $461 million in the first six months of the current fiscal year, the State Bank of Pakistan (SBP) data showed on Wednesday.

The country witnessed a net foreign outflow of $17 million during December.

The financial sector fetched $176 million in FDI from global investors in July-December of the ongoing fiscal, which was lower when compared with $230 million in the corresponding months of the last fiscal year, the data showed.

The investment in the gas and exploration sector dropped to $89.2 million in July-December from $138.9 million a year earlier.

The investment in the power sector fell to $237 million from $345 million.

The shrinking of the FDI is not a positive development for the country. The International Monetary Fund (IMF) programme’s delay, continuous political unrest, and Pakistan’s deteriorating external finances have all reduced international investors’ confidence.

Due to rapidly dropping foreign exchange reserves, a weakening rupee, and worsening macroeconomic indicators, Pakistan’s economy is currently in a severe crisis.

The economy is severely cash-strapped following a disagreement with the IMF over tax goals that is preventing loan payments from being made.

The situation worsened as a result of floods that inundated a third of the nation and cut its growth in half.

Analysts said dollar outflows and the deteriorating state of the economy have made the country one of the least desired moneymaking markets for foreign investors, with the repatriation of profits on foreign investments falling by 83.41% year-on-year in July-November of the current fiscal year 2022-23.

The central bank data showed paid profits from foreign investments in the country fell to $128.7 million in the first five months of FY23, down from $776 million reported in the corresponding fiscal year.

The economy is in virtual recession as the World Bank has projected growth of 2%, is about the same as population growth, for the current fiscal year, citing “precarious economic situation, low foreign exchange reserves and large fiscal and current account deficits” among the primary reasons.

There are also security concerns for investors as the country battles a Taliban insurgency in its northwest. There have been outflows from the stock market because of political uncertainty and economic and security worries.

Business

Huge investment potential exists in the telecom and IT sectors. Shaza Fatima

Published

19 hours ago

Farwa

According to Shaza Fatima Khawaja, Minister of State for IT and Telecommunication, there are numerous investment prospects in Pakistan’s IT and telecom sectors.

She noted that the current administration is dedicated to fostering foreign investment in the nation, in line with the Prime Minister’s goal.

According to a news release, CEOs Wateen Adil Rashid and Muhammad Shahbaz Khan of Taavun (Pvt) Limited, who paid her a visit on Tuesday, spoke with Minister of State for IT and Telecommunication Shaza Fatima Khawaja.

She declared that the private sector would receive complete support because it is essential to growing our exports.

Regarding youngsters, she stated that they are our greatest asset and that efforts are being made to further their growth.

Sheikh Nahyan bin Mubarak Al Nahyan of the United Arab Emirates was thanked by Shaza Fatima for his particular interest in promoting additional investment in Pakistan’s telecom industry.

Business

WB pledges complete support for changes aimed at stabilizing Pakistan’s economy.

Published

20 hours ago

Farwa

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with President of the World Bank Group, Ajay Banga, according to a press release from the ministry of finance here. During the meeting, the minister discussed Pakistan’s progress under the nine-month Standby Arrangement (SBA) program as well as ongoing reforms in priority areas of taxation, energy, and privatization.

According to the statement, the minister also extended an invitation to the president to visit Pakistan, and both parties acknowledged the necessity of a rolling 10-year country framework plan.

The minister also talked on safeguarding Pakistan’s eligibility for concessional funding and future project pipeline during a meeting with Masatsugu Asakawa, President of the Asian Development Bank (ADB).

The chief executive officer of the US International Development Finance Corporation (DFC), Scott Nathan, also met with the minister of finance.

They discussed during the conference how DFC may increase its investments in Pakistan after resolving unresolved conflicts in a cooperative manner.

According to the minister, the government is supporting creative financing strategies to maximize PPP potential and private sector participation.

According to the statement, he gave his word that the government will do everything in its power to assist investment projects by both foreign and local businesses in Pakistan.

Business

The cost of a liter of petroleum increased by much to Rs 8.14.

Published

2 days ago

Farwa

Prices for gasoline and high-speed diesel were raised by the government on Monday by Rs4.53 and Rs8.14, respectively, for the upcoming two weeks.

In relation to this, the ministry of finance released a notice.

Diesel now costs Rs 290.38 per litre, while petrol is now priced at Rs 293.94 per liter following the most recent increase.

Additionally, light diesel cost Rs6.54 more per litre, to Rs174.34. A 6.69% increase in price to Rs193.8 per liter was made for kerosene oil.

The impact of the developing Middle East situation and the expanding global market are the main factors contributing to the transformation.

Before the most recent spike, the price of gasoline and HSD had risen by almost $4 and $4.50 per barrel, respectively, on the global market during the previous two weeks.