Global foreign direct investment trends
By Nasir Simon Lamperski
According to the latest figures from the World Bank, IMF, ADB and other international agencies were generally phenomenal revenue growth of foreign direct investment around the world since the beginning of the new millennium. He was at the peak in 2000, plunged by nearly 40 percent in 2001 and then slumped in the 2002-03 season. According to the figures was the longest and the biggest drop. However, 2004 marked the beginning of a rapid recovery and is now in its third year. During this time, global FDI flows increased by over 20 percent per year. In fact, today it is estimated that global FDI is the preferred sailing through the ERA, which can be extended to the rest of the decade. With single-digit growth from 2007 onwards, global FDI receipts in 2010 will correspond to the peak in 2000 of U.S. $ 1.4 trillion in nominal terms.FDI and new markets
Bounce back post-2003 has been
driven by emerging markets. FDI influences to these regions increased by 57% in 2004 and 26% in 2005 and reached a record of nearly 400 billion dollars or more than 40 percent of total output.
According to the report's global competitiveness (2006-07), Pakistan scored relatively well on the market efficiency (ranked 54th) with the "complexity of operations" and "innovation" (ranked 60 and 66 respectively infantry regiment which is a good sign for foreign investors.According to Standard and Poor's (S and amp; P) upward trend of FDI in emerging economies (EME) is expected to continue in 2005. EMES FDI revenue grew apace in 2004, reaching 286 billion U.S. dollars, which was an increase of 42 % over 2003. As a result of global FDI flows rose the first time in three years, reaching 648 billion U.S. dollars. Was 2.5% higher than in 2003. Projections of future
FDI flows in emerging markets will remain a rising from 2006 to 1910, averaging more than 400 billion dollars on
year, but growth will be modest privatization of the tails and the global economy slows. FDI receipts in the country may be dried, and ends the process of privatization. In regions of the Kingdom of Thailand, the Federative Republic of Brazil and the Republic of Polish FDI in retail sales was an important source of productivity gains resulting in lower prices and higher consumption.
In 2006, revenues from FDI in emerging markets is expected to increase by only about 3 percent against the dollar to influence the developed world are expected increase by around 36%. In part it is because the recovery in flows to emerging markets is largely complete, while for developed countries is only the introduction.United States, the world's largest economy, is expected to continue a powerful magnet for foreign capital, attracting nearly a quarter of world FDI flows in 2006-10.
UK is listed as the most active
recipient of FDI in 2005 to $ 164 billion. The top ten recipient countries mainly in the developed world is expected to account for more than two-thirds of global FDI inflows.
These countries include: United Kingdom, United States, China, France, Luxembourg, Netherlands, Hong Kong, Canada, Singapore and Germany.phenomenon of mergers and acquisitions is expected
that most influence the growth of global FDI since 2007, will take place in developed countries and cross-border mergers and acquisitions (M and amp; A) will be a driving force in it. The value of cross-border
me amp; A rose to 435 billion U.S. dollars in the first half of 2006, 48% growth in 2005, during the same period and was highly concentrated in the developed world. FDI flows have been transferred from the service as a resource in the banking (Barclays / Absa deal) and telecommunications (Vodafone / Vodacom transaction).
role of protectionism or economic nationalism
It was foreseen that due to increased incidents of protectionism or economic nationalism, there may be a decline in FDI inflows and the rate of cross-border mergers and acquisitions (M and amp; A) on the inputs.
Rising protectionism against China by the EU and the U.S. can bring me true spirits amp; A. The European Commission and the U.S. Congress has already initiated legal measures to protect their economies from the onslaught of Chinese goods and foreign possessions.deteriorating situation of law and order, the slowdown in the privatization process, the lesser the mechanism of reform and increasing levels of corruption, the widening economic parities and, finally, high political risks to be one of the main reasons for the gradual slowdown impacts of FDI. emerging markets.
FDI and FPI in Pakistan
According to official claims, the country aims to achieve 7 billion U.S. dollars in foreign direct investment in the current financial year.
Government is planning road shows in Europe to inform investors many opportunities for investment in the country of manufacture, as well as infrastructure projects and the Middle East.
In this regard, the Commission has already been published privatize its priority list for outbound sales in 2007. Inflow of foreign direct investment (FDI) also rose significantly during the first two months of the current financial year. During July-August 2006-07, FDI reached 375.4 million dollars against 230.8 million dollars during the corresponding period last year, showing an increase of 63 percent.Pakistan received record FDI of about $ 3521 million during 2005-06, including privatization proceeds. Experts believe that high portfolio investment will improve the image of the country abroad and higher FDI is proof that this country has the potential for foreign investment.
comparative analysis
From FDI inflows to Pakistan in 2004-2005 and 2005 / 2006 the transport sector had the largest share
USD 517 million or 34 percent. Then, for financial companies - 17.7 percent, oil, gas and petrochemical industry - 14.3 percent, by - 4.8 per cent, trade - 3.4 percent, chemicals - 3.3% and others - 22.5 percent.
Government also established recently, investors relations desk in the Ministry of Finance to conduct foreign investors kept up to date on the economy of Pakistan. As per the statistics Pakistan has exhibited an increase amounting to 37.7% in terms of total investment in the first two months of the current financial year against the same period last year.global depositary receipts
Plans are to raise at least one billion U.S. dollars through a global depository receipts overseas (GDR) offering with the financial sector alone. MCB, National Bank of Pakistan, United Bank Limited, Habib Bank and Kot Addu Power Project is in line to start their IPO and calculations in the coming days.
However, due to several delays, OGDC by the share prices have fallen from Rs165 in June
to Rs125, despite new discoveries by the Corporation. MCB GDR
by Floatation $ 100 to 150 million by Merrill Lynch is already underway and plans road shows the Far East, Middle East, Europe and North America are starting next month.Foreign private investment in Pakistan suddenly see the market in September 2006. Almost all investment comes from the United States and Great Britain.
According to latest data, SBP (2006) investments to the tune of $ 42,096 million, flew into the Pakistani market in stocks. Was much higher than that of portfolio investment in July and August, this time $ 31.9 million. While normally enabled Singapore, UAE, Saudi Arabia and some European countries remained on the sidelines, the U.S. invested 26,730 million dollars and the UK $ 16th 371 m in September. Most investment went to the oil sector, while telecommunications and cement also attracted some investments.
Analysts believe that if
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