Foreign investors repatriate $836 million in 1H

Repatriation of profit and dividend by foreign investors rose by 10 percent during the first half (July-Dec) of this fiscal year (FY20) compared to same period of last fiscal year (FY19).

According to the State Bank of Pakistan (SBP), foreign investors repatriated some $ 836.3 million on account of profit and dividend during July-Dec of FY20 against $ 759.5 million in the corresponding period of last fiscal year, depicting an increase of $76.3 million.

During the period under review, major outflow of profit and dividend was recorded from Foreign Direct Investment (FDI) and cumulatively 87 percent of the repatriated amount was sent as returns on FDI. With an increase of 19 percent or $114 million, some $ 743.2 million were sent by foreign investors on account of return on FDI during the first half of the current fiscal year compared to $ 628.8 million in the corresponding period of last fiscal year.

However, repatriation of profit and dividend on account of portfolio investment declined by 29 percent. Foreign investors sent abroad $ 93 million as return on portfolio investment during July-Dec of FY20 against $ 130.7 million in the corresponding period of last fiscal year.

The major repatriation was registered from the manufacturing sector, where some $264 million were repatriated in first half of FY20. Oil and gas exploration was second largest sector with an outflow of $119 million. In addition, some $157 million were sent abroad from transportation and $154 million from financial business.