Global FDI trends 2018

Investment in Pakistan is targeted to surge by 17.2 percent of Gross Domestic Product (GDP) in 2018-19 fiscal year. In 2017-18 fiscal year the investment grew by 16.1%.

According to the official data, the fixed investment during the fiscal year will surge by 15.6 percent of GDP

Official sources said, “The investment target is achievable given the improvement in ease of doing business, affordable energy supply, and prospects of higher profits and enhanced capacity utilization rate.”

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Public investment under China Pakistan Economic Corridor (CPEC) will indirectly boost the private sector and promote the public-private partnership.

Technology, innovation, growth & development prompted through CPEC would improve other sectors as well. Furthermore, the projected impact of present investments by foreign companies and local enterprises is expected to strengthen the economy.

In the fiscal year, 2016-17 total investment was recorded at 16.1 percent of GDP compared to 16.4 percent of GDP in 2017-18 fiscal year. Fixed investment to GDP ratio surged to 14.8 percent in 2017-18 from 14.5 percent in 2016-17.

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As per sources in 2017-18, the private investment was recorded at 9.8 percent. National savings reached 11.5 percent of GDP compared to 12% in the fiscal year 2016-17.

In the last three years, commodity producing sectors saw smooth growth but there is still a room for more investment. Local savings need to grow rapidly for investment to reach a level which ensures growth over 6 percent. Investment in the country grew in 2017-18 period mainly due to projects relating to infrastructure development, construction, and allied sectors.