Profit, dividend up 58 percent: foreign investors repatriate $534 million abroad in July-January

Taking the full advantage of government''s policy, the foreign investors are rapidly transferring their earnings on investment abroad, resulted the repatriation of profit and dividend has registered a healthy growth of 58 percent during the first seven months of the current fiscal year (2011-2012).
The repatriation of profit was constantly on decline during the last fiscal year because of slow economic activities followed by global meltdown, which directly hit the profit of foreign as well as domestic companies. Latest statistics of the State Bank of Pakistan revealed that repatriation of profit and dividend by the foreign investors is again on surge and they are repeatedly transferring their profits on portfolio and foreign direct investment (FDI). Foreign investors have repatriated some 534 million dollars on account of profit and dividend during July-January of fiscal year 2011-2012 (FY12) as against 338.4 million dollars in corresponding period of last fiscal year, depicting an increase of 58 percent or 195.6 million dollars.
Repatriation of profit and dividend has registered from both component of foreign investment ie portfolio and FDI, the major outflow of profit and dividend has witnessed from the FDI and cumulatively over 71 percent of repatriated amount has been sent from returns on FDI. During the period under review, FDI inflows stood at 594 million dollars compared to one billion dollar in same period of last fiscal year.
During the period under review, repatriation from FDI and portfolio investment has surged by 44 percent and 103 percent respectively. Foreign investors have sent abroad 380 million dollars on account of return on FDI during the first seven months of the current fiscal year compared to 263 million dollars in the corresponding period of last fiscal year, depicting an increase of 117 million dollars.
The major repatriation has registered from the power sector where from foreign investors have repatriated 87.4 million dollars in first seven months of FY12. Petroleum refining is second largest sector where from foreign investors have sent abroad an amount of 77 million dollars. Tobacco, paper and pulp, mining and quarrying, cosmetics, basic metal, leather, electronics, and information technology are from those sectors from where not a single penny has been sent abroad by the foreign investors.
Repatriation from transport sector stood at 67.5 million dollars, oil and exploration 34.5 million dollars, food 26.3 million dollars, communication 45.7 million dollars, chemical 18.2 million dollars, textile sector 3.1 million dollars, pharmaceutical 9.1 million dollars and some 52.3 million dollars have been transferred from financial business by the foreign investors on account of profit and dividend in first four months. Bankers said there were expectations that some increase would be witnessed in the repatriation of profit and dividend by the foreign investor in the remaining period of current fiscal.