KARACHI: Repatriation of profit and dividend by the foreign investors fell sharply 55 percent during the first month of this fiscal year (FY22).
Despite some improvement on the economic front, the repatriation of profit and dividend by foreign investors witnessed a downward trend in the first month of FY22.
The State Bank of Pakistan (SBP) on Thursday reported that foreign investors repatriated some $159.2 million during July 2021 as compared to $354.5 million during July 2020, depicting a decline of $ 194 million.
The detailed analysis revealed that repatriation from Foreign Direct Investment (FDI) also declined. Major outflow of profit and dividend was recorded from the FDI and cumulatively some 88 percent of repatriated amount was sent as returns on FDI.
During the period under review, repatriation on account of FDI recorded 58 percent declined, while repatriation from Foreign Portfolio Investment (FPI) recorded an increase of 27 percent.
July FDI plunges 31pc YoY, clocks in at $90 million
Repatriation of profit and dividend on account of return on FDI was $ 141 million during the first month of FY22 versus $340 million outflow in the corresponding period of FY21.
The repatriation of profit and dividend on account of FDI is higher than overall FDI amounted to $90 million that arrived Pakistan during the first month of this fiscal year.
In addition, foreign investors repatriated $ 14.3 million as returns on portfolio investment in July 2021 down from $18.2 million in July 2020.
The highest outflow of profit and dividends amounting to $47.1 million was sent to the Netherlands, $33 million Switzerland and $18 by the United Kingdom investors.
It may be mentioned here that Pakistan has allowed 100 percent transfer of profit and dividend to foreign investors to attract foreign investment in the country. With a 20 percent increase, foreign investors repatriated some $ 1.622 billion during the last fiscal year (FY21) as compared to $1.346 billion in FY20.
Copyright Business Recorder, 2021
Comments
Comments are closed.