Investment commitments up by 75%

Even as the country´s political situation and investment climate remain dismal, Department of Industry (DoI) says new investment commitments from the domestic as well as foreign investors has gone up by a whopping 75 percent over the first four months 2012/13 compared to the same period last year.
Statistics compiled by DoI show, a total of 156 firms made fresh investment commitment of Rs 26.56 billion in the first four months of this fiscal year, whereas it was just over Rs 15 billion in the same period last year.
If those entrepreneurs kept their commitment and injected fresh capital, they would collectively create fresh job opportunities for 10,167 persons.
With 38 new projects registered under the hospitality industry with DoI, tourism sector has evolved as the most popular sector. However, in monetary terms, energy sector was the single biggest sector to draw biggest investment commitment.
Investors registered 22 projects on energy sector during the period, committing investment of about Rs 15.46 billion, DoI director Ram Sharan Chimoria told Republica. DoI data show, investment commitment to the sector has doubled compared to the figures last year.
"In fact, investment commitment to the sector is more than the total investment made in the country last year," Chimoria told Republica.
Investment commitment to the energy sector made around 58 percent of total investment commitment that DoI registered during the first four months of the current fiscal year.
Despite the power crisis, labor problems and lack of policy support, manufacturing sector stood as the second largest puller of domestic as well as foreign investment.
"Investors have registered 35 manufacturing projects during the first four months, and our data show together they will be investing Rs 5.83 billion, creating jobs for more than 4,250 persons," said Chimoria.
In monetary terms, investors in the first four months this fiscal year have committed to invest Rs 2.73 billion on tourism sector and Rs 1.73 billion in the service sector.
As usual, agro-based industry, despite its huge potential, drew a meager investment commitment of Rs 425 million.
However, DoI that compiles the data of industrial investment couldn´t provide breakdown of domestic and foreign direct investment.
"We could not do that because we have not been able to update statistics of domestic and foreign investment commitments separately. As soon we install new software, we will maintain a separate data on domestic and foreign investment," Chimoria stated.