However, global meltdown has seriously hit the profitability of local and foreign companies as a result, the repatriation of profit and divined is witnessing a downward trend during the current fiscal year. According to the State Bank of Pakistan, repatriation of profit by foreign investors has posted a decline of $129 million in the first half of FY10 as compared to same period last fiscal year.
With this decline, overall repatriation amount stood at $319.5 million during July-December of the current fiscal year as compared to $448.5 million in the corresponding period of last fiscal year, depicting a decrease of 28.8 percent. Major repatriation of profit and dividend has been witnessed in the Foreign Direct Investment (FDI) as it cumulatively registered some 82 percent of repatriation.
During the period foreign investors sent $261.7 million on account of return on FDI, which stood at $1.012 billion during the first half of FY10. Similarly, $57.7 million has been repatriated on account of return on Foreign Portfolio Investment (FPI) during July-December of current fiscal year.
Only 10 of some 36 sectors showed an increase with regard to repatriation of profit, while the remaining depicted downward trend. The major repatriation has been registered by the communication sector, where foreign investors repatriated $47 million in the first half of FY10 over some $27.1 million in the same period last fiscal year, depicting an increase of 73 percent.
Power sector is the second largest sector; where foreign investors sent abroad an amount of $38.8 million, however, the repatriation amount is 61 percent less than the same period of last fiscal year. Electronics, tourism and information technology are three sectors, where not a single penny has been sent abroad by foreign investors.
Repatriation from food surged by 48.8 percent to $27.2 million, with 33 percent increase; some $1.2 million from textile sector, $20.7 million from chemical with 110 percent rise, after an increase of 2 percent about $8 million from pharmaceutical and $10.3 million from transport equipment were transferred by foreign investors on account of profit and dividend during the period.
Foreign investors repatriated some $21.5 million from oil, gas and exploration sector, $15.3 million from beverages, $14.2 million from tobacco, $0.2 million from sugar, $20 million from petroleum refining and $2 million from fertiliser sector.
In addition, $2.5 million sent from cement, $27.5 million from trade, $10.8 million from financial services and about $6.3 million from social services have been sent abroad. During 2007-08, foreign investors sent a record amount of $921.4 million abroad on account of profit and dividend. The amount was $764 million in FY09, $804 million in FY07, $504 million in FY06 and $536 million in FY05.