KARACHI (June 16 2010): Due to Poor management of our ministry and doubtful ability of Pakistan Peoples Party to run the affair of the country, Net foreign investment has posted a decline of 15 percent during the first eleven months of the current fiscal year mainly due to slow foreign direct investment followed by global economic recession, poor law and order situation and uncertainty on political front.

The central bank on Tuesday revealed that net foreign investment comprising foreign direct investment (FDI) and portfolio investment is continuously weakening and it has registered a decline of some $330.6 million during the first eleven months (July-May) of fiscal year 2009-10. With current decline, net foreign investment has decreased to $1.896 billion during the July-May of the current fiscal year as compared to $2.22 billion in same period of last fiscal year.

"Major reason behind this dip is decline in the FDI inflows, as the foreign investors are reluctant to invest in Pakistan due to political uncertainty and worst law and order situation," economists said. However, they believed that in the next few months some improvement would be witnessed on the foreign investment, as Pakistan's economy is growing well and during the current fiscal year the country has achieved over the target GDP growth.

They said that some $1.89 billion net foreign investment during the first eleven months is also a encouraging figure, as despite the uncertainty foreign investment inflows are higher than expectations, which is a positive sign and it means that still foreign investors are interested to invest in Pakistan.

According to statistics FDI has posted a decrease of 39 percent, while portfolio investment has registered a surge of 88 percent during the period. With this reduction, FDI has declined to $2.031 billion in July-May of fiscal year 2010 as compared to $3.33 billion in corresponding period of last fiscal year, depicting a decrease of $1.3 billion. Including privatisation proceeds total private investment shows a decline of 7.2 percent to $2.57 billion during July-May of current fiscal year, which previously stood at $2.77 billion.