Foreign investment in 7MFY21 down by 78pc ministry.
Byline: Khaleeq Kiani
ISLAMABAD -- Amid 78pc decline in total foreign investment, the Ministry of Finance on Friday raised expectations about economic recovery during the current fiscal year based on improved signs in first seven months.
In its Monthly Economic Update and Outlook, the ministry reported that total foreign investment in July-January period amounted to $755 million against $3.438bn of comparable period last year, showing a decline of about 78pc.
'Prospects of economic growth are showing visible signs of improvement during July-January period 2020-21 which strengthen expectations about economic recovery,' said the outlook. It claimed credit for the timely measures against the pandemic in terms of fiscal stimulus, easing mobility restrictions, timely arrangement of vaccination, together with accommodative monetary policy allowed economic activities continue in the difficult time. 'Thus, it is observed that overall economic recovery is on its way and may accelerate in the coming months'.
The report said the recent developments in inflation showed negative trends. It expected that due to much-needed structural measures, the downward trend of prices of these items will be permanent.
In agriculture, downside risk to cotton production still persists, however it is expected that better production of other kharif crops will mitigate the risk. Further, for rabi season 2020-21, wheat crop production is expected to achieve production target as almost 99 per cent target area has been sown. On the basis of better input availability and favourable weather forecast, the production of wheat is expected to meet its target.
Industrial activity, measured by the LSM...
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