July-November period: repatriation of profit and dividend up 29 percent

The repatriation of profit and dividend by foreign investors posted a healthy growth of 29 percent during the first five months of current fiscal year (FY18).
Economists said that since the beginning of this year, increasing industrial activity and improved financial results of the corporate sector have pushed up the repatriation of profit and dividend. "The rising repatriation of profit and dividend also reflects that foreign investors are getting sufficient profit on their investments in Pakistan," they added.
The State Bank of Pakistan (SBP) Wednesday revealed that repatriation of profit and dividend by foreign investors is on increase, posting a healthy growth of 29 percent during the first five months of the this fiscal year.
Foreign investors have cumulatively repatriated some $936 million on account of profit and dividend during July-November of FY18 against $727 million in the same period of last fiscal year (FY17), depicting an increase of $209 million. Major outflow of profit and dividend was witnessed on account of Foreign Direct Investment (FDI) and cumulatively some 87 percent of the repatriated amount was sent as returns on FDI in July-November of FY18.
During the period under review, repatriation on account of FDI rose by 39 percent or $229 million. Foreign investors sent abroad some $822 million on account of return on FDI during the first five months of the current fiscal year compared to $592 million in the corresponding period of last fiscal year. During the period under review, Pakistan fetched FDI amounting to $1.146 billion, the SBP reported.
However, as the Pakistan''s equity market is not performing well, repatriation of profit and dividend from foreign portfolio investment (FPI) witnessed a declining trend, ie, by 18 percent. Repatriation of profit and dividend on FPI stood at $114 million in July-November of FY18 down from $134.7 million in the same period of last fiscal year.
Month-on-month basis, during November 2017, foreign inventors repatriated some $313.7 million including $275.2 million as return of FDI and $38.5 million on account of FPI.