Foreign direct investment in the first two months of this fiscal year fell by 37 per cent, to $87 million from $138m during the same period of last year, the State Bank reported yesterday.
The portfolio investment, however, surged by 216 per cent during July-August, jumping to $122m from $38m during the same period last year.
The declining FDI would put more pressure on external accounts particularly in the wake of widening trade gap due to falling exports.
The present government has been struggling to attract foreigners to bridge the investment gap, but law and order and a host of other factors are scaring investors away.
The recent postponement of Chinese president’s visit to Pakistan aggravated the perception. Chinese investment here could have attracted more investment from other countries.
