KARACHI: Net foreign investment in Pakistan fell by more than half in the 2008/09 fiscal year that ended on June 30.

Investors stayed away from the country amid rising security concerns and a weak global economy meant net foreign investment fell 51 percent from a year earlier to $2.67 billion, the central bank said.

Foreign portfolio investment saw outflows of $1.05 billion, in sharp contrast with inflows of $2.67 billion in the previous fiscal year.

Rated deep in junk bond territory, Pakistan was saved from a balance of payments crisis and default by a $7.6 billion emergency loan package from the International Monetary Fund last November.

Officials met last week with IMF officials to review progress under the programme, and the head of the finance ministry, Shaukat Tarin, said on Tuesday that the country has requested about $4 billion in additional financing.

Pakistan’s economy is in virtual recession as its gross domestic product growth in the 2008/09 fiscal year of 2 percent has barely kept up with population growth.

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