KARACHI - Despite witnessing a high level of deterioration in foreign Direct Investment during FY09, Pakistan is still well placed compared to other regional countries in terms of Inward FDI Performance Index. According to IMF data, Pakistan scored 1.06 on FDI performance index during CY2008, which is highest after China among the other South Asian countries. Although it is less than the previous years index value but it still indicates that Pakistan is receiving more FDI relative to its economic size. This relatively better ranking is perhaps the reflection of higher FDI in 2006 and 2007 as this index is based on three years average. It is pertinent to mention here that the Inward FDI Performance Index ranks counties by the FDI they receive relative to their economic size. It is the ratio of a countrys share in global FDI inflows to its share in global GDP. Value greater than one indicates that the country has received more FDI than its relative economic size; a value below one suggest that it received less FDI (a negative value means that foreign investors disinvest in the period. Meanwhile according to the latest break up of foreign investment, the growth in FDI had contracted by 53.2 per cent during July-October 2009. The inflow of foreign direct investment had amounted to $621.8m in July-Oct this year from $1.329b during the equivalent months of last fiscal year. The growth in FDI in the most of the economic sectors had depicted negative trend except power and construction sectors however, telecom, financial and oil and gas exploration sectors witnessed sharp fall in the flow of FDI received by the country during the analytical period. The SBP in it recent report indicated that capital flows to developing countries had already begun dropping by FY07, and likely to remain constrained for some years. Countries such as Pakistan, which still has significant macroeconomic imbalances, will face problems in accessing international capital market at reasonable cost. Thus, it is imperative to mobilize domestic savings to finance a greater part of domestic investment. To mobilize savings, it is necessary to build savings institutions that can tap pension and provident funds. Report also indicated that Pakistan saw a sharp reversal of the earlier net portfolio investment receipts, and foreign direct investment flows fell sharply, even as the access to international capital markets disappeared.