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KARACHI: Repatriation of profit and dividend by foreign investors fell sharply, ie, 93 percent during the first two months of this fiscal year (FY23) due to economic slowdown.

The State Bank of Pakistan (SBP) Tuesday reported that foreign investors repatriated $28.2 million during July-August 2022 as compared to $396.4 million during the same period last year, depicting a decline of $ 368.2 million.

Analysts said that the massive decline in repatriation of profit and dividend reflect that foreign investors’ earnings have been down drastically during the last fiscal year.

The detailed analysis revealed that repatriation from Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) declined sharply.

Jul-Aug FDI down 26pc YoY

During the period under review, repatriation on account of FDI declined by 93 percent to $26.6 million down from $ 372.8 million. Repatriation from FPI fell from $ 23.6 million to $ 1.6 million in the first two months of this fiscal year.

The highest outflow of profit and dividends amounting to $11 million was sent from the power sector and $10 million from the mining sector.

Copyright Business Recorder, 2022

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