The repatriation of profit and dividend by the foreign investors registered a slight increase of 3 percent during the first five months of the current fiscal year. The repatriation of profit was constantly on decline during the initial months of the current fiscal year as global meltdown had hit the profitability of companies, resulting the repatriation of profit and dividend was on decline.
However, repatriation of profit and dividend is on surge as foreign investors have repatriated some $288 million on account of profit and dividend during July-November of fiscal year 2010-2011 as against $279 million in the same period of last fiscal year.
Sources said that government has allowed 100 percent transfer of profit or dividend to the foreign investment aimed to boost foreign investment in the country. Therefore, the foreign investors are fully enjoying government's policy by consistently sending their earnings abroad.
Economists said that global meltdown has seriously hit the profitability of local and foreign companies as a result the repatriation of profit and divined was on decline, however, now Pakistan's economy is improving and overall trading and industrial activities are also revising. According to State Bank of Pakistan (SBP) major repatriation of profit and dividend has witnessed from the FDI and cumulatively some 77 percent of repatriated amount has sent from FDI.
Repatriation on Foreign Direct investment (FDI) has declined by 2 percent or $4.4 million, while return on Foreign Portfolio Investment (FPI) has increased by 29 percent or $23.7 million during the July-November of the current fiscal year. Foreign investors have sent abroad $226.3 million on account of return on FDI during the first five months of the current fiscal year as compared to $230.7 million in the same period of last fiscal year.
Similarly, $61.6 million has repatriated on account of return on FDI during July-November of current fiscal year relative to $47.9 million in corresponding period of last fiscal year. Some 12 sectors out of some 36, showed an increase in the repatriation of profit and dividend, while remaining sectors depicting downward trend. The major repatriation has registered from the communication, where from foreign investors have repatriated $50 million in first five months of 2011.
Oil and gas exploration is second largest sector, where from foreign investors have sent abroad an amount of $48.3 million during the period as against some $20.5 million in the same period of last fiscal year. Beverages, tobacco and sugar are three sectors, where from not a single penny has sent abroad by the foreign investors.
Repatriation from food stood at $26.9 million, chemical $12.3 million, textile sector $0.6 million, $6.8 million from pharmaceutical and $47 million from power sector has been transferred by the foreign investors on account of profit and dividend in first five months.
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