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Coronavirus
VERY HIGH
Pakistan Deaths
16,094
11224hr
Pakistan Cases
750,158
497624hr
Sindh
271,524
Punjab
264,010
Balochistan
20,760
Islamabad
68,906
KPK
104,480

KARACHI: Repatriation of profit and dividend by the foreign companies operating in the country crossed $1 billion in the first seven months of this fiscal year. The State Bank of Pakistan (SBP) reported Friday that repatriation of profit and dividend by foreign investors continued upward trend, increasing by 8 percent during July-Jan of FY21 compared to the same period of FY20 and supported by higher corporate earnings.

Foreign investors repatriated $ 1.025 billion on account of profit and dividend during the first seven months of this fiscal year as against $ 947 million in the corresponding period of last fiscal year, showing an increase of $78 million.

Analysts said that improved financial earnings of the corporate sector have scaled up repatriation of profit and dividend by the foreign investors during this fiscal year. “The recent surge also reflects that despite Covid-19 the foreign investors have earned better margins on their investments in Pakistan. This will help to attract more foreign investment in different sectors,” they added.

During the period under review, although Foreign Direct Investment (FDI) in the country is declined, profit and dividend payments on account of FDI surged by 14 percent or $119 million.

An amount of $ 961.6 million was repatriated as return on FDI during July-Jan of FY21 versus $ 842 million corresponding period of last fiscal year. During the period under review, the country received net FDI worth $ 1.145 billion, down 27 percent.

Repatriation of profit and dividend on account of portfolio investment was declined by 36 percent as foreign investors transferred some $ 64 million on account of portfolio investment in July-Jan of FY21 down from $104 million in same period last fiscal year.

Country wise data showed that highest outflow of profit and dividend amounted to $362 million was repatriated by UK investors. In addition, US ranked second with $195 million.

Sector wise analysis revealed that some $ 220 million were sent from food followed by $136 million from financial business, $119 million from communication and $ 106 million from transport services during July-Jan of FY21.

Month on Month basis, an amount of $133.3 million was repatriated on account of profit and dividend in January 2021. This includes $121.5 million as return on FDI and $12 million on account of portfolio.

Copyright Business Recorder, 2021