ISLAMABAD - Foreign Direct Investment (FDI) in Pakistan increased by 15 percent during first nine months (July-March) of the ongoing financial year, 2015-16 as against the corresponding period of the previous year, said Minister of State/ Board of Investment (BoI)Chairman Dr. Mifta Ismail.
Talking to media men here on Thursday, he said the FDI now stood at $957 million, compared to $832 million in the corresponding months last year.
Giving further details, the BoI chairman said, out of the total amount invested, $515 million had come from China, $126 million from United Arab Emirates (UAE), while the remaining from other countries.
Mifta further informed that $472 million FDI was registered in the power sector, while $224 million in the oil and gas sector during July-March period of the FY 2015-2016.
He admitted the government could not achieve the investment-to-GDP ratio target of 16 percent during the current fiscal year, missing it by a slight margin.
"We have set a challenging target for enhancing investment-to-GDP ratio up to 20 percent by the end of the fiscal year 2017-2018," he informed.
The minister of state also admitted that investment in Pakistan was comparatively lower as compared to other countries of the region, including India, Sri Lanka and Bangladesh, where investment to GDP ratio was around 28-30 percent.
Citing the reasons for less investment, Mifta said it was due to gas and electricity shortages in the country as well as due to some other issues.
He added that he would hold a meeting with Prime Minister Nawaz Sharif today (Friday), and would ask him to allow gas connections to the industrial sector, which remain disconnected for the last few years.
Talking about the Automotive Development Policy 2016-21, Mifta said the policy would help reduce car prices in the country, which were currently very high. “Some of the new manufacturers are interested in introducing new car models in the country from the next year,” he said, adding, “Gandhara Nissan Limited would start producing ‘Datsun’ car by 2017.
Meanwhile, a Chinese company is also interested in coming up with one or two new models of cars from the next year.”
Briefing the media on China-Pakistan Economic Corridor (CPEC), the minister said, “The Khyber Pakhtunkhawa government has asked for establishing 9 special economic zones on western routes of the CPEC, while Balochistan has requested for 7 zones.” Meanwhile, Mifta met with Jin Hong and his team from a state-owned construction company, Sichuan Zhongcheng Coal Construction Group Ltd,
which wants to invest in roads, buildings and dams. He asked them to meet National Highway Authority officials in this regard. Jin Hong responded by saying, “We are brothers, and are glad and thankful to BoI for giving us a warm welcome here.”