Pakistani foreign investment falls 34.4 pct

KARACHI, Feb 15 (Reuters) - Net foreign investment in Pakistan fell 34.4 percent to $1.47 billion in the first seven months of the 2009/10 fiscal year compared with $2.23 billion in the same period last year, the central bank said on Monday.
Out of total foreign investment, foreign direct investment fell 54.6 percent to $1.17 billion in the July to January period, from $2.59 billion the previous year, the State Bank of Pakistan said.
But foreign portfolio investment flows reversed, with a $290.7 million inflow in the first seven months of this fiscal year compared with an outflow of $355.8 million in the same period of the last fiscal year.
Authorities imposed a floor on the Karachi Stock Exchange benchmark index in August 2008 as political uncertainty and economic and security worries drained investor confidence.
The floor discouraged new investment and also led to a sharp outflow of funds, as foreign investors sold holdings in off-market trade.
The floor was removed in December 2008.
The International Monetary Fund (IMF) saved Pakistan from a balance of payments crisis with a $7.6 billion emergency loan package in November 2008.
The loan was increased to $11.3 billion on July 31 last year.