KARACHI: Foreign investors repatriated some $ 396 million on account of profit and dividend during the first two months of this fiscal year (FY22).
The State Bank of Pakistan (SBP) Tuesday reported that repatriation of profit and dividend by foreign investors is on decline since the beginning of this fiscal year and fell slightly by 3 percent during July-Aug of this fiscal year.
Cumulatively, foreign investors repatriated $ 396.4 million on account of profit and dividend during July-Aug of FY22 against $407.6 million in same period of last fiscal year (FY21), depicting a decline of $11.2 million. Major outflow of profit and dividend was witnessed from Foreign Direct Investment (FDI) and some 94 percent of repatriated amount was sent as returns on FDI.
During the period under review, repatriation from FDI fell 5 percent or $19 million. Foreign investors sent abroad $372.8 million on account of return on FDI during the first two months of the current fiscal versus $391.7 million in the corresponding period of last fiscal year.
Repatriation of profit and dividend from portfolio investment was increased by 48 percent or $7.7 million to $ 23.6 million in July-Aug of FY22 up from $ 15.9 million in same period of last fiscal year.
Analysts said that slowdown in the repatriation of profit and dividend reflects that earning of foreign companies has declined. This may be because of the Covid pandemic, they added.
Month on Month basis, foreign investors repatriated $ 237 million including $231.7 million as return on FDI and an amount of $5.4 million from foreign portfolio investment.
Adopting a liberal policy the federal government had allowed 100 percent transfer of profit or dividend to attract foreign investment in the country.
Copyright Business Recorder, 2021