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Karachi:
Foreign investment in the country has fallen 15 percent in six months (July-December) of 2010-11 fiscal year referred to national and international economic slowdown and security hampered the flow of money to supply chains that drive the economy .

According to data released by the State Bank of Pakistan on Friday, foreign investment totaled 1.05 billion dollars in July-December 2010 compared to 1.24 billion kronor for the same period the previous year, showed a decrease of 15.4 percent. Of total investment was $ 828,500,000 in the form of FDI, while $ 221.5 million was in the form of portfolio investment on the stock markets of the country.

Assistant Vice President for Research BMA Capital, Abdul Shakur, said the slowing national economy, political instability, law and order situation has discouraged foreign investors from putting their money into the country. He said that the international economic recession over the past two years and the turmoil in global markets following the debt problems of large scale have also stopped the flow of money to Pakistan.

While the budget deficit breaks all records, the government opposes an increase in local oil and electricity prices for political reasons.

However, in doing so, the Treasury short of money is bound to face serious consequences, the fact that international oil prices are on a steady increase, says a research report released Friday by the Securities Topline.

In January this year, the price of Saudi light crude oil - a benchmark local companies for exploration and production (E & P) - has increased by eight percent to $ 96 a barrel.

If this trend continues, Oil and Gas Regulatory Authority (Ogra) meeting later this month to decide the price of local oil in the month of February has a crucial impact on the state budget, according to Farhan Mahmood Topline Securities.