AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)

KARACHI: Foreign investors repatriated some $892 million abroad on account of profit and dividend during the first half of this fiscal year (FY21).

With some improvement in the economic activities, the repatriation of profit and dividend by foreign investors is gradually increasing. It rose by 7 percent in July-Dec of FY21.

The higher outflow of profit and dividend also reflects that Pakistan’s economy is performing well and can produce better margins for foreign investors, analysts said.

According to the State Bank of Pakistan (SBP), foreign investors repatriated some $ 892.3 million on account of profit and dividend during the first half of this fiscal year as compared to $ 836.3 million during the same period of last fiscal year (FY20), depicting an increase of $ 56 million.

The detail analysis revealed that major outflow of profit and dividend was witnessed from the Foreign Direct Investment (FDI) and cumulatively some 94 percent of repatriated amount was sent as returns on FDI. Repatriation on account of FDI posted 13 percent increase, while repatriation from Foreign Portfolio Investment (FPI) recorded 44 percent decline during the period under review.

Repatriation of profit and dividend on account of return on FDI was surged by $ 97 million to $ 840.1 million during the July-Dec of FY21 versus $ 743.2 million outflow in the corresponding period of last fiscal year.

The repatriation of profit and dividend on account of FDI is lower than overall FDI that arrived Pakistan during this fiscal year. The country has fetched FDI amounting to $ 952 million during July-Dec of FY21.

Similarly, foreign investors repatriated $ 52.2 million on account of returns on portfolio investment down from $93.1 million.

Most of repatriation has been made from food sector amounting to $ 177 million, financial business $ 133 million, communication $119 million, oil and gas $ 74million and Tobacco $ 78 million.

Month on Month basis, foreign investors repatriated $ 144 million including $132.6 million of FDI returns and $11.7 million of return on portfolio investment in December 2020.

It may be mentioned here that Pakistan has allowed 100 percent transfer of profit and dividend to the foreign investors to attract more foreign investment in the country. Therefore, the foreign investors are taking full advantage of government’s policy by sending their earnings abroad.

Copyright Business Recorder, 2021

Comments

Comments are closed.