Identification of FDI in Different Industries of Pakistan

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).

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.

Role of FDI in Financial Business Industry:

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.

Role of FDI in Food Packaging Industry:

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
15.7million.
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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.

Role of FDI in Sugar Industry:

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.

Role of FDI in Textile Industry:

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.

Role of FDI in Cement Industry:

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.

Role of FDI in Petroleum Refining Industry:

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.

Role of FDI in Oil and Gas Industry:

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
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ForasalSchlumberger (Western) SA, Shell Development and Offshore Pakistan B.V, Tullow
Pakistan, WEATHERFORD OIL TOOL ME, Ltd, and Zaver Petroleum Corporation.

Role of FDI in Mining and Quarrying Industry:

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.

Role of FDI in Telecommunication Industry:

According to Pakistan Telecom Authority (PTA) statistics released on Wednesday, the FDI
inflow declined by $385.7 million to reach $1438.60 million in 2007-08 as compared to $1824.3
million recorded in 2006-07.Industry experts told that the major investors of the telecom sector
have declined investments on network and technology infrastructure. However, the FDI inflow
will continue as the companies are now focusing to expand their business in small cities and
villages, they added.

As per PTA figures, telecommunication sector’s share in overall FDI of the country also fell by
7.6 percent to stand at 27.9 percent in 2007-08. However, the total FDI witnessed slight growth
to reach $5152.80 million in the outgoing fiscal year. In 2006-07, the telecommunication sector’s
share was 35.60 percent in the overall FDI inflow of the country, which was also the second
highest FDI recorded in this sector since 2001-02. The overall FDI inflow was recorded at
$5124.9 million in 2006-07.

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