According to State Bank of Pakistan (SBP), the repatriation of profit and dividend maintained an upward trend during last fiscal year surging by 10 percent. Capitalizing on the government''s liberal policy, foreign investors repatriated some $ 2.019 billion on account of profit and dividend during July-June of FY17 compared to $1.912 billion in the corresponding period of last fiscal year (FY16), depicting an increase of $ 197 million.
The detailed analysis revealed that the repatriation of profit and dividend from Foreign Portfolio Investment (FPI) registered a decline of 6 percent. The repatriation of profit and dividend on account of Foreign Direct Investment (FDI) posted an increase of 14 percent. In addition, the major outflows of profit and dividend were also witnessed from the FDI and cumulatively, over 82 percent of the repatriated amount has been sent as returns on FDI.
Foreign investors transferred $ 1.734 billion on account of returns on FDI during July-June of FY17 compared to $ 1.512 billion in the corresponding period of last fiscal year (FY16). In addition, the repatriation on FPI declined by $ 24.5 million to $ 376 million. The major repatriation has been made from the financial sector, where foreign investors repatriated $ 391 million during the period under review. Food sector is second largest sector wherefrom foreign investors transferred $ 271 million on account of profit and dividend.
Similarly, $ 180 million has been sent aboard from communication sector, $ 140 million chemical sector, $ 139.9 million from oil and gas exploration, $ 166 from power sector and an amount of $116 million from transport sector during the last fiscal year.
Copyright Business Recorder, 2017