Telecom and IT fetch $ 1.702 FDI in 10 months -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Telecom and IT fetch $ 1.702 FDI in 10 months

LAHORE, May 27 2006: Telecom and Information technology sectors have attracted a hefty foreign direct investment of 1.702 billion dollars in 10 months of the current financial year, it was learnt. In comparison with the inflow of FDI in Telecom and Information Technology in entire fiscal ear 2004-05, both the sectors have attracted 1.185 billion dollars or 229 per cent more FDI in 10 months of this fiscal. In 2004-05 both the sectors had received only 516 million dollars worth foreign direct investment.

The sector-wise FDI inflow details obtained from the Board of Investment showed that the Telecom and Information Technology have attracted 77 per cent of the total FDI in 10months of the on going financial year. From July 2005 to April 2006 the country has received a total of 3.02 billion dollars foreign direct investment. According to Bol, the telecom sector has attracted a major chunk of the FDI from July 2005 to April 2006. Power second leading FDl receiving segment which has attracted 310 million dollars in 10 months of this fiscal.

Similarly, financial business has fetched 290million dollars while the fourth major FDI earning sector is oil, gas exploration which received 243 million dollars during this period. Break-up of FDI shows that food sector has received 46.5 mil­lion dollars, beverages5.7 million, tobacco 2.1 million, textile 36.1 million, mining/quarrying 5.2 million, petrochemical 8 million, petroleum refining 24.4 million, electronics 16.3 million, electrical machinery 1.2 million, chemical 50.4 million, pharmaceutical 27.4 million, construction 58.7 mil­lion, transport 6.8 million, stor­age 0.2 million, trade 108.3 million, tourism 2.8 million, paper & pulp 0.1 million, cement 37.1 million, sugar 4.5 million which other sectors received 140 million dollars from July 2005 to April 2006 period of the current financial year.

An official of the Board of Investment said that the inflow of the Foreign Direct investment has exceeded the annual target of three billion dollars. He said that the total inflow of investment FDI and portfolio investment amounted to 3.37 billion dollars.

He was optimistic that total investment in2005-06 would exceed 3.5 billion dollars level. The Bol official said that the overall acceleration in the economic activity in the ongoing financial year has paved way for an impressive increase in the inflow of foreign investment in this fiscal.
Source: The Nation