Inward and Outward FDI in

Pakistan
Group Members:

Khalil Ullah 118

Muhammad Fazeel Khan 128
Muhammad Nayab Gul 131
Sajid Hameed 144

Presented In:
The Islamia University of Bahawalpur, Pakistan
Foreign Direct Investment

Foreign direct investment (FDI) or foreign investment

refers to long term participation by country A into country
B. It usually involves participation in management, joint-
venture, transfer of technology and expertise. 
Types of FDI

 Inward Foreign Direct Investment

Inward FDI for an economy can be defined as the

capital provided from a foreign direct investor (i.e.
the coca cola company) residing in a country, to that
economy, which is residing in another country.

“ Foreign direct investment by a foreign firm

establishing a facility within the domestic
country. Contrasts with outward FDI. ”

EXAMPLE: General Motors decides to open a

factory in Malaysia. They are going to need some
capital. That capital is inward FDI for Malaysia.

 
Types of FDI .

 Outward Foreign Direct Investment

Foreign direct investment by a domestic firm

establishing a facility abroad. Contrasts with inward
FDI.

EXAMPLE: General Motors decides to open a

factory in Malaysia. They are going to need some
capital. That capital is outward FDI for USA.

 
5 Key Reasons To Invest In Pakistan

 Geo-strategic Location
 Trained Workforce
 Economic Outlook
 Investment Policies
 Financial Markets
Foreign Investment Inflows In Pakistan ($ Million)

Green Field Privatization

Year  Total FDI 
Investment Proceeds

2005-06 1,981.00 1,540.00 3,521.00

2006-07 4,873.20 266.40 5,139.60

2007-08 5,276.60 133.20 5,409.80

2008-09 3,719.90 0.00 3,719.90

2009-10 2,150.80 0.00 2,150.80

2010-11 (Jul-Jan) 947.00 0.00 1,181.80

Green Field Investment

A form of foreign direct investment where a parent

company starts a new venture in a foreign
country by constructing new operational facilities from the
ground up. In addition to building new facilities, most
parent companies also create new long-term jobs in the
foreign country by hiring new employees. 

Privatization Proceeds

Selling off public assets to private operators can create a win-

win situation for developing countries looking to unload
expensive and unsustainable assets
Main Greenfield Projects, Inward Investing In Pakistan

Investing company Home Economy Industry Investment value (US $)

China Mobile China Communications 500

Total France Petroleum 406

Yamaha Japan Transport Equipment 150

Metro Germany Trade 55

Coca-Cola U.S. Beverages 100

Procter & Gamble U.S. Chemicals 100

Toyota Motor Japan Transport Equipment 180

Credit Suisse Group Switzerland Finance 33

Country Wise FDI Inflows ($ Million)

2010-2011 Jul-Jan

USA 142.9
UK 127.6
U.A.E 158.3
Japan 1.1
Hong Kong 91.8
Switzerland 23.3
Saudi Arabia 5.9
Germany 9.1
Korea (South) 1.5
Norway 0.4
China 4.9
Others 380.2
Sector Wise FDI Inflows ($ Million)

Sector 2010-2011
(Jul-Jan)

Oil & Gas  296.4

Financial Business 114.1
Textiles 14.0
Trade 27.6
Construction 37.5
Power 86.4
Chemical 19.5
Transport 54.7
IT & Telecom 77.3
Others 219.5
Foreign Direct Investment, Net Inflows
Foreign Direct Investment, Net Inflows (South Asia)
Foreign Direct Investment, Net Inflows (Developed Countries)
Foreign Direct Investment, Net Outflows

Pakistani companies are operating in ;

 UK
 Singapore
 Malaysia
 UAE
 Saudi Arabia
 USA
 Qatar
Foreign Direct Investment, Net Outflows

• 6,000 Pakistani companies operating in the UAE e.g.

Netsol’s (a Pakistani software company).

• Pakistanis have invested 6.7B Dirham's in Dubai real

estate.

• Fosh Tech dealing in electronic field in Singapore.

• Most banks invest in many countries such as HBL.