Foreign direct investment (FDI) fell sharply in the first month of this fiscal year, indicating that the government has failed to improve the country’s image and to convince the global investors despite bulk of unused liquidity in the international market.
The State Bank reported on Monday that the FDI fell to just $24 million in July from $119m in the same month last year.
The 80 per cent decline in the FDI could further shatter the confidence of foreigners willing to invest here, particularly while neighbouring India looks more attractive with $28 billion FDI in 2013.
The government has already completed 14 months in power, apparently struggling hard to invite foreign investors. But the result seems extremely poor so far.
The current month is more troubled for the country as two large public rallies are in Islamabad, protesting and demanding wrap-up of the entire government and the parliament for fresh general elections. A bleak picture is visible from investors’ point of view.
