The investment in telecom sector is gradually increasing once again in Pakistan with the expansion and advancement of infrastructure of telecom companies in different cities. This is further indicated by the overall value of FDI that stood at $92.5 million in the months of July and August 2017.
According to the State Bank of Pakistan (SBP), the telecom sector is the third largest contributor of FDI in the first two months of financial year 2017-18 after the Power and Construction sector, having massive share of $210 million and $171 million respectively.
Like previous months, China is the biggest contributing country with FDI of $258.3 million in the months of July and August.
A major part of this investment was made by Zong as per its expansion plans of 3G and 4G services in Pakistan.
Besides, FDI from Malaysia was recorded at $110 million during the said period. The FDI from USA was also significant with the value of $202 million mainly in portfolio investments.
The net FDI in Pakistan recorded a growth of 37 percent in the period of July and August when compared with the same months of last financial year. It stands at $301 million this year as against $220 million of last year.
Investment in the real sector reached $351 million in the first two months of 2017-18. The portfolio investment, especially in debt securities and equities, witnessed an outflow of $49.6 million during the said period.