3G/4G licences rises FDI by 2.5% in FY14

3G/4G licences rises FDI by 2.5% in FY14

Pakistan received foreign direct investment (FDI) of $1.36 billion in the first 11 months of 2013-14, which is 2.5% higher than the FDI received during the comparable period of the preceding fiscal year.

According to data released by the State Bank of Pakistan (SBP), a significant spike in FDI was witnessed in May when the country received a staggering sum of $610.9 million mainly because of the proceeds of the telecom spectrum auction.

A major increase in the foreign investment was registered in the telecommunications sector, where net FDI remained $406.4 million during the period under review. FDI in the telecommunications sector in May alone amounted to $539.3 million, thanks to the one-off auction of 3G/4G licences.

Earlier, FDI stood at $750.9 million in July-April, which was almost 13% less than the amount that the country received in the corresponding 10-month period of the preceding fiscal year. Stats shifted drastically after the 3G/4G auction in Pakistan.

FDI is directly linked to the security situation. With the improvement in law and order conditions, Pakistan is likely to receive major inflows in the form of FDI

Countries that brought significant amounts of FDI into Pakistan during the period under review include China ($527 million), Switzerland ($206.3 million), United States ($196 million), Hong Kong ($213.7 million), United Kingdom ($103 million), Italy ($64.8 million), France ($66.1 million), Austria ($61.1 million) and Oman ($35.5 million).

Countries that took major investments out of Pakistan in the last 11 months are Norway ($27.3 million), Finland ($25.7 million), Qatar ($53.6 million), Saudi Arabia ($43 million) and Singapore ($42.4 million).