Islamabad, Aug 21: Pakistan's Foreign Direct Investment (FDI) fell 24.5 percent in July from the year before, the Central Bank said. Overseas investment fell to 32 million dollar in July, the first month of the fiscal year, from $ 42.4 million a year earlier, the Karachi-based State Bank of Pakistan said. Companies based in the US invested $ 18.8 million in July, or more than half of the total investment.
Pakistan plans to raise 1.4 billion dollar in FDI this year after it fell to as low as 484.7 million dollar in the year ended June 30, 2002, as foreign companies stayed away from investing in the country because of war in neighboring Afghanistan.

In the previous fiscal year ended on June 30, Pakistan missed its overseas investment target of $ 1 billion. Still, FDI rose to $ 798 million after companies based in the UK, US and the United Arab Emirates invested more in the country's banking industry.

Last year, Pakistan sold its third largest lender, United Bank Ltd., to Abu Dhabi Group and Bestway holdings of the UK.

Bureau Report