Telecom Sector Remains Major FDI Contributor in 2013-14

FDI

Telecom sector remained major contributor for bringing foreign direct investment into Pakistan during first 11 months of fiscal year 2013-14, said a fact sheet published by State Bank of Pakistan.

On the whole Pakistan received foreign direct investment (FDI) of $1.36 billion during the first 11 months of 2013-14, slightly up from $1.32 billion it attracted during same duration last year.

Out of this $1.36 billion, telecom sector contributed towards the net FDI with $406.4 million during the reported duration.

According to SBP stats, telecom sector invested $736.7 million during first 11 months of the FY2013-14, however, $330 million were withdrawn from the country by foreign telecom operators. thus resulting into a net FDI of $406.4 million during the reported period.

This investment in telecom sector is mainly due to proceeds of 3G and 4G auction.

Information Technology brought $9.9 million net FDI into the country. Software development sector contributed with $13.4 million FDI during the reported duration while hardware development sector brought 0.8 million FDI into Pakistan.

IT services sector fetched $4.3 million net FDI into Pakistan during first 11 months of FY 2013-14.

It merits mentioning here that telecom sector had brought $191 million FDI into Pakistan during first 11 months of previous fiscal year. While telecom companies had withdrawn $556.6 million out of the country during the same duration resulting into net FDI of –365 million dollars.

Telecom sector is likely to bring more FDI during next couple years due to planned expansion in 3G and 4G networks.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK