Pakistan Economy | Foreign Direct Investment reaches the 5-month high
A major jump by Pakistan Economy this year. $289 million five-month high Foreign Direct Investment (FDI) fascinated by Pakistan
China remains the single heavy investor in Pakistan Economy. Reflected a strong belief in the country’s future and raise the Foreign Direct Investment ratio.
The inflows were 17% more than the $239.5 million in November 2017. An all-time supporting country, China, alone has invested $248.1 million making 89% of the total $280 million received in the month.
China has invested funds in the construction of Pakistan’s power sector, State Bank of Pakistan reported.
Investments on their way:
As a part of its global belt and road initiative (BRI), China is investing $50 billion in Pakistan’s infrastructure; roads and power sector.
The neighboring country, China has so far invested $20 billion in Pakistan. Next phase of China Pakistan Economic Corridor is going to help Pakistan in building special economic zones that would revive Pakistan’s economy in the next three years.
Concerning Foreign Direct Investments, other friendly countries have also expressed their intentions to comprehensively invest in power, petroleum refinery and oil and gas exploration sectors.
Saudi Arabia’s investment in LNG power projects:
Saudi Arabia has expressed its interest in buying two LNG power projects of around 2,400 megawatts in Punjab.
UAE’s investment in Oil Refinery:
United Arab Emirates (UAE) has shown its keen interest in setting up a petroleum oil refinery in Karachi. Moreover, considerable investment in oil and gas exploration sectors is also expected.
Renault Manufacturing units in Pakistan:
The French auto giant Renault has decided to invest its vehicles in Pakistan. Recently the foreign minister Pakistan Shah Mehmood Qureshi had discussed the investment plan with the ambassador of France Marc Barety.
This investment would benefit Pakistan in various sectors. The ambassador also told about some other French companies that are willing to start a business in Pakistan.
Earlier, Renault Trucks had introduced the full range of its vehicles to Pakistan’s market and now the company is going to import three new ranges of trucks by the end of 2019. The future of the truck industry is bright. Truck industry in Pakistan has been growing at a fast pace after the government shifted its gears. The future of the truck industry is bright.
PepsiCo to invest 1 billion dollars:
Continuing its investment and support, the giant international beverage, PepsiCo is all set to invest $1billion in Pakistan. The decision has been confirmed by the official delegates. The company has assured to support Pakistan in both social and economic sector.
Investments by Pak Suzuki:
Pak Suzuki is ramping up its efforts to increase the production of its cars in Pakistan. The company has got 80acres of land for the establishment of its new plant. Costing around $460 million, the plant will be able to manufacture 100,000 vehicles per year.
Another investment plan by Coca-cola:
Coca-Cola Turkey assured to invest $200 million in coming two or three years. The decision has been taken during a meeting between Coca-Cola’s delegates and Prime Minister Imran Khan in Turkey. In addition to their current investment of $500 million, the company is planning to expand its operations by investing another $200 million.
British Airways to resume its functions in Pakistan after a decade:
The national carrier United Kingdom, British Airways, will soon restart their flight operations in Pakistan after almost a decade. The officials said that the return of British Airways is a reflection of great improvements in security.
From culture and cricket to people, politics, and education, links between Pakistan and Britain are already extraordinary. This launch will serve as a vote of confidence in the future of those extraordinary links.
DGISPR Major General Asif Ghafoor also took to Twitter, praising the security forces for the restoration of peace in the country. He thanked British Airways for reviving its flight operations in Pakistan.
The State Bank of Pakistan reported that Pakistan attracted $3.09 billion foreign direct investment in 2018, ended June 30th.
All friendly countries which are planning to invest, have put their plans on hold in the wait for clarity on the economic policies of the government that are mainly linked with the acquisition of the International Monetary Fund (IMF) bailout package. Countries would start investing in Pakistan as soon as it succeeds in getting an IMF bailout.
In the five months (July0November 2018) of the current fiscal year, FDI stands at $880.7 million that is lower than $1.36 billion attracted in the same five months last year.
Source: Express Tribune