Foreign investors repatriated some $1.77 billion on account of profit and dividend during 10 months of this fiscal year (FY18), mainly due to improved financial results of the corporate sector. Economists said the rising trend in the repatriation of profit and dividend reflects that the country's economy is performing well and the corporate sectors' earnings have been improved.
According to the State Bank of Pakistan (SBP), repatriation of profit and dividend by foreign investors continues to surge, posting a growth of 16 percent during July-April of FY18. Foreign investors repatriated some $1.773 billion on account of profit and dividend during the first 10 months of this fiscal year against $1.521 billion in the same period of last fiscal year (FY17), depicting an increase of $252 million.
Major outflow of profit and dividend has been witnessed in the FDI and cumulatively some 85 percent of the repatriated amount was sent as returns on FDI. During the period under review, repatriation from FDI rose by 22 percent. Foreign investors sent abroad an amount of $1.513 billion on account of return on FDI during July-April of FY18 compared to $1.235 billion in the corresponding period of last fiscal year, showing an increase of $278 million.
However, repatriation of profit and dividend from portfolio witnessed a downward trend, declining by 9 percent or $27 million to $260 million in July-April of FY18.
The detailed analysis revealed that the major outflow of profit and dividend has been witnessed from financial sector amounting to $244 million, communication sector $169 million, power $190 million, oil and gas $221 million, food $198 million and an amount of $98 million was repatriated from chemical sector.
Month-on-month basis, during April 2018 an amount of $173 million was repatriated. This included $37 million from portfolio investment and $137 million from FDI.
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