Repatriation of profit and dividend by the foreign investors declined by 32 percent during the first seven months (July-Jan) of this fiscal year (FY19). Economists said that the massive drop in the repatriation of profit and dividend reflects that the foreign investors are not getting heavy margins on their investments. "It observed that repatriation of profit grows, when the corporate sector earns good profits," he added.

According to the State Bank of Pakistan (SBP), repatriation of profit and dividend from the country posted a massive decline of 32 percent during the first seven month of the current fiscal year.

Foreign investors repatriated some $918 million on account of profit and dividend during July-Jan of FY19 against $1.343 billion in same period of last fiscal year (FY18), depicting a decline of $425 million. Major outflow of profit and dividend was witnessed from the FDI and cumulatively some 84 percent of repatriated amount was sent as returns on FDI.

Repatriation from FDI was also decreased by 34 percent to $776 million during the first seven month of the current fiscal year compared to $1.173 billion in the corresponding period of last fiscal year. Repatriation of profit and dividend from portfolio also fell 16 percent or $28 million to $142 million in July-Jan of FY19 down from $170.0 million.

Copyright Business Recorder, 2019