The repatriation of profit and dividend by the foreign investors fell 11 percent in the first two months (July-Aug) of the current fiscal year (FY20).
According to State Bank of Pakistan (SBP) foreign investors repatriated some $ 214.7 million as profit and dividend during July-Aug of FY20 compared to $ 240.5 million in same period of last fiscal year (FY19), depicting a decline of $ 25.8 million.
Economists said that the repatriation of profit is constantly on decline for the last few months as slowdown in economic activities has hit the profitability of foreign and domestic companies.
The detailed analysts revealed that during the period under review, repatriation on account of Foreign Direct investment (FDI) was decreased by 10 percent, while return on Foreign Portfolio Investment (FPI) fell 20 percent.
However, major amount of profit and dividend was sent abroad on account of FDI. Cumulatively, some 82 percent of repatriated amount was sent as return on FDI, the SBP reported.
An amount of $ 197.4 million was repatriated as return on FDI in first two months of this fiscal year as against $ 218.8 million in corresponding period of last fiscal year, Showing a decline of $ 21.1 million. Similarly, foreign investors repatriated some $ 17.3 million on account of FPI in July-Aug of FY20 down from $ 21.7 million in same period of last fiscal year.
It may be mentioned here that the government has allowed 100 percent transfer of profit or dividend to the foreign investment aimed to boost foreign investment in the country. Therefore, the foreign investors are fully enjoying government's policy by consistently sending their earnings abroad.
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