|
|
|
|
|
The Foreign Direct Investment (FDI) increased to US$ 950 Million i.e.
almost 20% in the financial year ending June 2004 as compared to US $ 798
million in 2003. It is gaining momentum due to Pakistan's liberal and growth
oriented investment policy and encouraging economic indicators. Increase in
FDI started taking-up from $485 Million in 2002 and jumped to $798 Million in
2003, further to $950 Million during 2004. It is projected to increase more in
current year. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation &
Investment said while reviewing the FDI inflows at Board of Investment here
today.
The Minister was informed that Oil & Gas, Financial, Communication, Trade,
Textiles, Construction and other sectors attracted investment due to the
liberal investment regime, fiscal, capital market, deregulation &
privatisation reforms and good governance. In Oil & Gas sector FDI is US $ 273
Million, Financial sector: US $ 242 Million, Communication US $ 221 million,
through Trade US $ 35 Million, Textile: US $ 35 Million, Construction US $ 32
million and other sectors attracted investment to the tune of US $ 109.1
million. The top investing countries included USA, Switzerland, UAE, Norway,
United Kingdom, and Japan.
Dr. Hafeez Shaikh said that the Pakistan's economy has started picking-up as
GDP Growth jumped to 6.4 %, foreign currency exchange rate remained stable,
the growth in the manufacturing sector was 13.4 % and KSE as the best
performing Stock Exchange in the region. We have ensured level playing field
to the local and foreign investors with no restrictions in any sector,
remittance of profits & dividends and 100 % foreign equity was allowed, he
said.
He said that during the last 20 months proceeds worth Rs.44 billion have been
realized through the privatisation of 17 transactions by adopting two pronged
strategy, which included strategic sale and selling the shares of various
public sector entities through Capital Market. The privatisation proceeds were
average per year Rs.6 billion during the first 10 years, Rs.12 billion average
per year during President General Pervez Musharraf's first three years, and
now 44 billion in President Musharraf's democratic rule of the 20 months. Thus
there has been tremendous acceleration.
There existed vast scope for foreign companies to accelerate the pace of
economic interaction with Pakistani entrepreneurs, he stated. Dr. Hafeez
Shaikh appreciated the marketing efforts and facilitation services being
provided by BOI and advised to accelerate the pace. He expressed satisfaction
on successful holding of Beijing, Hong Kong and U.K. investment Conferences by
BOI and desired an extensive follow-up by the Board. The Minister felt that
such road shows if properly organized, facilitate the country's image building
efforts, disseminate information to potential investors and enhance close
interaction among foreign and Pakistani investors. Similarly, the increased
numbers of foreign delegations visiting Pakistan also demonstrate improving
confidence of international community in Pakistan and its business climate.