Foreign Direct Investment (FDI) nosedived in Information Technology sector with a $17.4 million decline in the first ten months (July-April) of 2015-16 on a year-on-year basis, revealed State Bank of Pakistan (SBP).
However the overall communications sector comprising (telecommunication, information technology and postal & courier services) registered $54.9 million net FDI with $149.7 million inflow and $94.8 million outflow.
According to the SBP data, FDI in the country crossed $ 1 billion mark in the first 10 months of this fiscal year fiscal year 2015-16.
According to the data, Pakistan fetched FDI amounting to $1.016 billion during July-April of FY16 compared to $964 million in the same period of FY15, depicting an increase of 5 percent or $52.5 million.
During the period under review, FDI inflows stood at $1.762 billion against the outflow of $746 million. In addition, FDI during the first 10 months of FY16 is even higher than the overall FDI ($923 million) in FY15.
According to statistics, $11.9 million inflow and $29.3 million outflow was registered in information technology sector during July-April (2015-16). Net FDI in software development remained at $4.1 million and in hardware development it measured at $1.3 million.
On other hands, FDI inflows for IT services remained at $6.6 million and outflow at $29.3 million thus registering negative $22.8 million investment.
According to SBP, during the period under review, portfolio investment witnessed a downward trend and declined by 146 percent. Portfolio investment stood negative at $381 million in first 10 months of this fiscal year compared to $836.8 million investment in the corresponding period of last fiscal year, showing a decline of $1.218 billion.
Month-on-month basis, FDI fell by 55 percent to $59 million in April 2016 compared to $132 million in April 2015. During April 2016, FDI inflows were $146 million and outflows stood at $87 million.
Similarly, net foreign investment in Pakistan, comprising FDI, portfolio investment and foreign public investment, declined by 77 percent to $615.5 million at the end of 10 months of current fiscal year down from $2.737 billion.