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Telecom sector witnessed an outflow of US$ 253.3 million Foreign Direct Investment (FDI) in eight months of the current financial year 2011-12 as a result of closure and curtailment of their business and operations in the country.
According to the State Bank of Pakistan’s statistics, the de-investment in the telecom sector, one of the leading contributors of FDI in Pakistan, was recorded 364 percent in Jul-Feb compared with FDI landing US$ 96 million in the corresponding period of the previous financial year.
Another prominent factor that led to a drop in share of the sector was the stuck up privatization proceeding of US$ 800 million payment by Etisalat due to a dispute with the government of Pakistan over legal transfer of land and property titles.
The telecom was one of the most attractive sectors for foreign investors from 2005 to 2008. Its share in total FDI started to rise gradually and reached 45 percent in financial year 2006-07.