Updated on
Summary Capital continues to fly out of the country owing to poor law and order situation.
State Bank of Pakistan statistics reveal that foreign investors have pulled out $ 14.6 million in the early few days of the current fiscal. The foreign investors purchased shares worth $26 million and T-bills worth $ 375,000, while they sold shares worth $40.5 million. American investors remained prominent in this trading by selling shares worth $ 1.98 million.On the other hand, billions of dollars are flying out of Pakistan unofficially using illegal means such as Hawala and Hundi. Remittances have crossed the $11 billion mark in FY11. After a gap of seven years, Pakistan’s current account stood at surplus of US$542 million in FY11 as against a deficit of US$3.9 billion last year. However, net foreign investment in Pakistan fell 8.6 per cent to $1.53 billion in the first 10 months of 2010-11 fiscal year because of a decrease in foreign direct investment.Pakistan enacted a new Anti-Money Laundering Law in March 2010, creating a permanent Anti-Money Laundering and Combating the Financing of Terrorism AML/CFT framework. According to the Asia/Pacific Group (APG) report on Money Laundering, Pakistan is failing to fully comply with most recommendations and special recommendations made by APG authorities.
