Over 600 private companies attract $1.58 billion FDI during July-January

[LahoreEstate]

Over 600 private companies attract $1.58 billion FDI during July-January
ASMA RAZAQ & ZAFAR BHUTTA
ISLAMABAD (February 23 2009): More than 600 private companies in 30 different sectors of the economy attracted $1.58 billion during first seven months (July-January) of the current financial year. Each company attracted more than $0.09 million FDI, sources in the Board of Investment (BoI) told Business Recorder here on Saturday.

These include basic metals, cement, chemicals, construction, electrical machinery, electronics-consumer/household, electronics-industrial, financial business, food, food packaging, hardware development, IT services, leather and leather products, machinery other than electrical, metal products, mining and quarrying, oil and gas explorations, personal services, petro chemicals, petroleum refining, pharmaceuticals & OTC, postal and courier services, hydel power, thermal power, rubber and rubber products, social services, software development, sugar, telecommunications, textiles, tobacco and cigarettes, trade and transport.

The FDI in financial business posted a negative growth of 7.2 percent to $635m during the period under review against $684.3 million in corresponding period of last year. The borrowing power of the consumers has dwindled substantially after 2007 as a result of overall depreciation in economy. The high interest rate of banks has affected their business and subsequently the investors are reluctant to get loans, an analyst said.

There are 42 private companies that have attracted investment in financial business. These companies include ABN AMRO BANK NV, ACE Insurance Ltd, Acumen Fund Pakistan, Albaraka Islamic Bank, American Life Insurance Company (Pakistan) Ltd, AMZ Securities (PVT) Ltd, Bank Al Falah, Bank of Tokyo, Barclays Bank PLC, Citibank, Crescent Commercial Bank, Deutsche Bank, Dubai Islamic Investment Bank, Elixir Securities Pakistan, Emirates Global Islamic Bank, Faysal Bank, Habib Bank, Habib Metropolitan Bank, Hong Kong Shanghai Banking Corporation, International Housing Finance, Kashf Holding, Kashf Microfinance Bank, MCB Bank, Meezan Bank, New Hampshire Insurance Company, New Jubilee Insurance Company, New Jubilee Life Insurance Company, NIB Bank, Oman International Bank SAOG, Orix Leasing Pakistan, Pak-Oman Investment Company, Pak-Brunei Investment Company, Pakistan Kuwait Investment Company, Pak-Libya Holding Company, Prime Commercial Bank, Royal & Sun Alliance, Saudi Pak Bank, Saudi Pak Industrial Agricultural Investment, Standard Chartered Services Pakistan, Standard Chartered Bank, United Bank and Western Union.

The FDI in food packaging increased from one million dollars to $100.5 million. Only one company Tetra Pak Pakistan Limited attracted investment. Pak Pakistan Limited is a joint venture between Packages Limited and Tetra Laval International, S.A., the world's leading liquid food packaging company. Foreign Direct Investment in food declined to $9.3 million against 15.7 million.

As many as 14 private companies are attracting FDI in the country in Food sector. These companies include Cadbury, Continental Biscuits, Danone Asia Ltd, English Biscuit Manufacturers, Gate Gourmet Pakistan, IFFCO Pakistan Ltd, Mian Rice Mills, Nestle Pakistan, Popular Food Industries, Rafhan Maize Products, Tetley Clover (PVT) Ltd, U.G Food Company Pvt Ltd, Unilever Pakistan and Venus Pakistan.

The sugar industry saw sharp rise in FDI to $14.1 million against $5.4 million registering increase by 89.6 percent. Six sugar mills attracted FDI to expand their operations and the mills include Dewan Sugar Mills Limited, Habib Sugar Mills Ltd, Hunza Sugar Mills Ltd, Mecca Sugar Mills, Malt Tech (Pvt) Ltd and SGM Sugar Mills.

The investment in textile sector registered hike by 38.4 percent. As many as 14 private companies attracted investment in textile sector. The companies include A-4 Industries, Apollo Textile, Crescent Bahuman Ltd, Crystal knitters, Grain Tex, Irfan Textile (Pvt) Ltd, Ittehad Textile, J&P Coats Pakistan (PVT) Ltd, L.H. Industry, NITEKS Pakistan, International Linen Pakistan, Pasha Silk Embroidery, Renfro Crescent Pvt Ltd, S. Fazal Illahi & Sons, and Unique International.

The cement sector saw decline in investment from $82.9 million to $30.5 million. Only three companies attracted investment and companies include Attock Cement Pakistan Ltd, Bestway Cement Ltd, and Subh-e-Noor.

The FDI in petroleum refining increased to 64.1 million from 49.1 million with an increase of 30.5 percent. Oil refineries are expanding their units that resulted in increase of FDI. These refineries include Attock Petroleum Ltd, Attock Refinery Ltd, BOSICOR Pakistan Ltd, China Petroleum Engineering & Construction, National Refinery Ltd, Pak-Arab Refinery Ltd, Pakistan Oilfield Ltd, Pakistan Refinery Ltd and Trans Asia Refinery.

Oil and Gas exploration sector attracted investment of $417.9 million that was 14 percent more than the last year. 26 companies attracted investment in the said sector. These companied include Baker Hughes, BHP Petroleum, BP Pakistan Exploration & Production Inc, British Petroleum, Capital Drilling Ltd, Dewan Drilling, Eastern Oil Field Services, ENI Pakistan (Pvt) Ltd, Hanover Services, IPR Transoil Corporation, KCA Deutag, M-I Overseas Ltd, MND Exploration and Production Ltd, New Horizon Exploration and Occidental Petroleum Inc, OGEC Cracow Ltd, OMV Pakistan Expl. Gmbh, OMV South West Miano, Orient Petroleum Inc, Petrosin Gas Pakistan, Premier Kufpec Pakistan Exploration Ltd, Premier-Kufpec Pakistan B.V., Pride ForasalSchlumberger (Western) SA, Shell Development and Offshore Pakistan B.V, Tullow Pakistan, WEATHERFORD OIL TOOL ME, Ltd, and Zaver Petroleum Corporation.

The FDI in mining and quarrying sector registered a decline of 25.7 percent to $12.6 million against $17 million. The FDI declined due to poor law and order situation in Balochistan and NWFP provinces. Only one company Tethyan copper company Pakistan (Pvt) Limited attracted investment.

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