$95m disinvestment recorded in IT services
ISLAMABAD: A worrying factor was the large net disinvestment recorded in the IT services sector for the year (amounting to $ 95 million), Pakistan Economic Survey 2009-10 revealed.
According to the Survey, out of all major industry categories, 12 recorded higher FDI for the period, while 24 industries witnessed a net reduction in FDI inflow.
Sources in the IT sector revealed that poor law and order situation in the country is the main reason behind low investment in the IT services sector. Continuous deteriorating law and order conditions for last few years have made foreigners reluctant to invest in Pakistan because of the implicit risks.
Sources further said another reason for low foreign investment in this sector is over-saturation. Most of the investors have completed their infrastructure construction work ie buildings, storerooms and offices in this sector in which they invested a lot of money during the last few years and therefore they no longer need to make this investment.
Source: Business Recorder