KARACHI - Badly affected from political uncertainty, continued energy crisis and decrease in reinvested earnings by the investors in key economic sectors, the inflow of foreign direct investment into Pakistan has slumped to $1.175 billion in the first seven months (July-January) of current financial year 2009-10, showing a decline of $1.45 billion or 54.6 per cent over the same period of the last fiscal year. However, foreign inflows to equity market (portfolio investment) witnessed a significant improvement as the amount under this investment increased to $290.7 million by registering 181.7 per cent growth during July-January FY10 from $-355.8 million in the corresponding period of the previous year, the SBP reported on Monday. The SBP fresh break-up of foreign investment in Pakistan indicated that the net foreign investment dropped by 34.4 per cent that was some how offset by the higher portfolio inflows. Consequently, country received a total of $1.466 billion worth foreign investment during the period under review, compared with $2.234 billion in the equivalent months of FY09. According to SBP statistics, the total foreign private investment inflow with privatisation and without privatisation proceeds turned down to $1.505 billion during respective seven months (Jul-Jan) of this year 2009-10 from $2.269 billion in the same course of FY09 by depicting 33.7 per cent negative growth. It may be mentioned here that during the last three years more than 70 per cent of FDI was concentrated in three sectors, i.e., communication, foreign, and oil& gas exploration, with the increase in provisioning costs of financial business and stiff competition in communication, foreign direct investment inflows in these two sectors dried up during the reported months of the ongoing fiscal year. Notwithstanding power, food, pharmaceuticals, metal products, construction and transport registered moderate to considerable growth in Jul-Jan FY10. Due to slowdown in merger and acquisition activities and banks higher NPLs, the FDI flows to the financial sector dipped by 86.4 per cent and stood at $86.4 million during Jul-Jan from $635.2 million in FY09. Communication and oil & gas exploration sectors also fell to $113.2 million and $320.7 million from $768.5 million and $417.9 million respectively, during Jul-Jan FY09. The decline in the said sectors are attributed to lower investment, higher losses, heavy duties and weak law and order situation. It is pertinent to mention her that investment in power sector rose by 36.5 per cent to $102.4 million as against $75 million in FY09.