Pakistan Struggles with FDI in Telecom and IT Sector

Foreign Direct Investment (FDI) nosedived in Information Technology sector with a $21 million decline in the first seven months (July-January) of 2015-16 on a year-on-year basis.

However the overall communications sector comprising (telecommunication, information technology and postal & courier services) registered $53.5 million net FDI with $132.5 million inflow and $79 million outflow.

According to statistics released by the State Bank of Pakistan (SBP), $8.3 million inflow and $29.3 million outflow was registered in information technology sector during July-January (2015-16).

Net FDI in software development remained at $2.9 million and in hardware development it measured at $1.1 million.

On other hands, FDI inflows for IT services remained at $4.3 million and outflow at $29.3 million thus registering negative $25.1 million investment.

According to the SBP data, FDI remained at $74.8 million in telecommunications after $124.2 million inflow and $49.4 million outflow during the period under review.

The postal & courier services registered negative net FDI after outflow of $0.2 million.

According to data, the country’s total FDI increased by 4.6 percent in the first seven months of 2015-16 on a year-on-year basis after receiving $647.9 million FDI in the July-January period, which is $28.4 million higher than the FDI received in the same seven-month period of the preceding fiscal year.

FDI from China amounted to $409 million in July-January, which increased almost 120% from a year ago. The share of Chinese investment in the net FDI during July 2015-January 2016 stands at 63.1%, more than double from 30% a year ago.


  • Great initiative from Amin Yousufza ireview on FDI in Pakistan particularly in the ICT sector to highlight the telecom sector of Pakistan. As you know very well Mr. Yousufzai Pakistan’s treaty and several agreements from China had been very supportive, cordial, welcoming, in favor of China. For the technology sector including telecommunications, ICT, engineering, nuclear, solar, fossil fuel, oil & gas, co-operation in the energy sector including the Pak China Economic Corridor all road leads to China and from there to the ROW.
    With all this cordiality including the PTA, FTA trade agreements from the Ministry of Commerce Govt. of Pakistan we notice lack of warmth from China for Pakistan which includes the travelling, visas, the PTA/FTA trade agreement for exports of goods, services, cross border trade, bilateral trade is not reflected when they are sent from Pakistan. For wellness in China the WTO membership of China and related benefit to global trade facilitation was first initiated by Pakistan. As for Pakistan the initiative of facilitating the first trails Beta for the 3G/4G trails were done by Zong, China Mobile in Pakistan for the first time. Pakistan’s cordiality should be reflected in concessions, cordiality from China towards the launch of the 5G trails which are being conduYocted in China and the first possible country would be Pakistan, on which I’m personally involved for the road trails of the Driverless car of Google in Pakistan as a platform.
    Dubai as a matter of fact Etisalat the UAE carrier Telco., has delayed for very long time the settlement of T&T the state owned Telco utility owned by the GOP. This is appaling, for a friendly country to delay.
    Mr. Yousufzai let me quote the example of Vodafone a cellular operator licensed in India has not paid to the Indian Govt. Some days reported in the Financial Times the Indian Govt., confiscated the assets of Vodafone India worth $2 billion, for the assets of Vodafone. The railway locomotives supplied by Chinese supplier are of inferior quality are badly damaged with structure fault, may cause injury accidents. Now they propsoed to repair. I suggest the consent be taken from the UIC The International Railways Union, Paris for a technical reccomendation of this fiasco in Pakistan. This should be replaced by the Chinese supplier with damages for loss of revenue, goodwill, with penalty, and apology from the supplier. We have great honor for the Chinese for the cooperation on the Nuclear Power Plants in Pakistan and other sectors of technology and shall always be grateful to the Chinese people for their cooperation in all times.

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