TABLE 1

Inflow of Foreign Investment in Pakistan

(Million $)
Percent of Total
Year

Direct

Portfolio

Total

Direct

Portfolio

1976/77
1977/78

10.7
35.5

1978/79
1979/80

36.0
28.2

1980/81
1981/82

35.0
98.0

1982/83
1983/84

42.1
48.0

1984/85
1985/86

70.3
145.2

23.4
16.0

93.7
161.2

75.0
90.0

25.0
10.0

1986/87
1987/88

108.0
162.2

21.0
10.5

129.0
172.7

83.7
93.9

16.3
6.1

1988/89
1989/90

210.2
216.2

7.2
-4.7

217.4
211.5

96.7
102.2

3.3
-2.2

1990/91
1991/92

246.0
335.1

-9.0
218.5

237.0
553.6

103.8
60.5

-3.8
39.5

1992/93
1993/94

306.4
354.1

136.8
288.6

443.2
642.7

69.1
55.1

30.9
44.9

1994/95
(1994/95*)

442.4
(442.4)

1089.9
(227.8)

1532.3
(670.2)

28.9
(66.0)

71.1
(34.0)

1995/96
1996/97

1090.7
682.1

205.2
267.4

1295.9
949.5

84.2
71.8

15.8
28.2

Source: State Bank of Pakistan.

Notes:Direct investment consists of cash, capital equipment brought-in and reinvested
earnings.
* = Excluding 862.2 million of PTC Vouchers

TABLE 2
Shares of Inflow of FDI from Various Countries
(Percent)

UK

UAE Germany France

Hong Kong,
Saudi
China
Italy Japan Arabia Canada Netherlands Others

Year

USA

1981/82
1982/83

15.5 19.9
11.6 16.9

8.4
10.0

3.6
3.3

0.19
0.23

0.15
0.06

0.02
0.01

0.43
0.50

0.23
2.6

0.30
0.23

1.52
3.34

49.8
51.3

1983/84
1984/85

8.8 16.3
24.5 12.7

8.2
16.9

4.8
9.1

0.10
1.71

0.51
0.85

0.14

0.45
9.53

2.5
5.4

0.21
0.43

1.35
9.71

56.8
9.1

1985/86
1986/87

24.2
39.7

8.6
4.7

47.9
23.7

2.9
5.0

0.55
1.39

1.9
6.20

0.27
0.37

4.33
8.7

-5.0
0.92

0.74

0.89
0.55

13.5
8.0

1987/88
1988/89

28.2 15.7
45.1 10.8

15.0
6.2

11.3
4.8

3..08
3.68

3.39
3.01

0.67
0.57

8.38
8.0

0.55
0.24

0.62
0.43

0.25
0.81

12.8
16.3

1989/90
1990/91

43.4 10.5
52.8 13.7

7.3
3.7

5.2
5.1

2.77
2.88

0.42
1.34

1.75 7.45
1.18 10.65

0.51
0.36

0.42
0.77

2.45
0.93

17.8
6.6

1991/92
1992/93

63.7
44.7

6.1
8.4

3.1
3.1

6.4
11.8

2.53
1.98

4.05

0.59
0.19

5.28
7.18

0.03
2.67

0.90
0.09

0.24
1.83

11.1
14.1

1993/94
1994/95

32.2
39.9

9.0
8.7

2.1
10.6

2.6
4.0

3.13
3.05

0.34
0.49

0.08
0.06

8.38
3.68

0.54
0.20

0.34
0.09

-0.03
1.02

41.3
28.2

1995/96
1996/97

29.3 29.1
36.1 35.2

4.8
8.0

2.4
2.6

1.28
1.5

3.11
1.1

0.04
0.26

7.52
5.37

2.46
-2.49

0.07
0.25

1.09
0.1

18.8
11.0

Source: State Bank of Pakistan.

14The

cautious investment attitude of Japanese businessmen toward Pakistan is well

documented in Shirouzu (1993). This will be discussed in Section IIID.

TABLE 3
Inflow of FDI by Type
(Million PRs)
Percent of Total Assets

Total
Assets

Years

Cash
Brought In

Capital
Equipment
Brought In

Re-Invested
Cash
Earnings
Brought In

Capital
Equipment
Brought In

Reinvested
Earnings

1980
1981
1982

293.3
432.8
458.3

126.1
247.7
206.5

90.8
83.7
105.9

76.4
101.4
145.9

42.9
57.2
45.0

31.0
19.2
23.1

26.1
23.4
31.8

1983
1984
1985

534.7
511.0
752.1

391.9
273.9
489.9

15.3
9.6
10.9

127.5
227.5
251.3

73.3
53.6
65.1

2.9
1.9
1.4

23.8
44.5
33.4

1986
1987
1988

1528.3
1905.9
2396.0

1133.6
912.4
1344.9

19.3
18.9
315.0

375.4
974.6
736.1

74.2
47.9
56.1

1.3
1.0
0.8

24.5
51.1
40.7

1989
1990
1991

3768.9
6013.4
6441.4

1988.4
4014.5
4093.8

607.1
490.5
382.0

1173.4
1508.1
1965.6

52.7
66.7
63.5

16.1
8.1
5.9

31.1
25.1
30.5

1992
1993
1994

9001.5
11170.4
24013.8

3642.1
7225.8
7778.31

2975.6
1292.6
13371.8

2383.8
2652.0
2863.7

40.4
64.7
32.4

33.0
11.6
55.7

26.5
23.7
11.9

55.7
50.2

14.2
26.5

30.1
23.3

Average
1980-94
1991-94
Source: State Bank of Pakistan,
issues).

Foreign Liabilities and Assets and Foreign Investment in Pakistan

(various

TABLE 6
International Comparison of Cost Structure of Port Handing
(US$)
Karachi

Colombo

Jebal Ali

Bombay

Pilotage

2100

288.4

436

1680

Port Dues

3220

1820.0

Nil

1190

Dockage

1120

210.0

229

1540

Tug Hire

2238

292.0

640

Nil

Channel Dues

Nil

Nil

Nil

Nil

Line Handlers

Nil

Nil

164

Nil

Entering Dues

Nil

288.4

Nil

Nil

Pilot Fee

Nil

60.0

Nil

Nil

Nil

Nil

Nil

135

Nil

Nil

Nil

8822

2958.8

1469

4410

Pilot Boat
Mooring Launch
Total Charges

Source: Overseas Investors Chamber of Commerce & Industry, Karachi.

TABLE 7
FDI as Percentage of GDP and Fixed Investment
FDI as Percentage of
Year
1984/1985
1985/1986
1986/1987
1987/1988
1988/1989
1989/1990
1990/1991
1991/1992
1992/1993
1993/1994
1994/1995
1995/1996
Average
1984/19851995/1996

GDP

Fixed Investment

0.2 2
0.45
0.32
0.42
0.52
0.54
0.54
0.69
0.59
0.68
0.73
1.69

1.37
2.68
1.85
2.56
3.03
3.13
3.10
3.69
3.10
3.80
4.25
9.45

0.61

3.50

Source: Government of Pakistan, Economic Survey 1996/97 .