Despite slow economic activities, foreign investors repatriated some $600 million profit and dividend during 10 months. However, overall repatriated amount is some 10 percent lower than the same period of last fiscal year. According to State Bank of Pakistan, the repatriation of profit by foreign investors posted a decline of $68 million in the July-April of FY10 as compared to same period of FY09.
With current decline, overall repatriation stood at $609.6 million during the first 10 months of the current fiscal year as compared to $677 million in the corresponding period of last fiscal year. The repatriation of profit was constantly on surge during the last few years due to massive investment by foreign investors in different sectors especially telecom, petroleum and information technology.
However, global meltdown has seriously hit the profitability of local and foreign companies as a result the repatriation of profit and divined witnessed a downward trend during the current fiscal year. Repatriation on Foreign Direct investment (FDI) has declined by 13 percent or $70 million, while return on Foreign Portfolio Investment (FPI) has increased by $2.4 million during the period.
Major repatriation of profit and dividend has been witnessed from the FDI and cumulatively some 66 percent of overall repatriated amount has been sent from FDI. Foreign investors sent abroad $455 million on account of return on FDI during the first 10 months of current fiscal year as compared to $525 million in same period last fiscal year. Similarly, $154.6 million has been repatriated on account of return on FPI during July-April of current fiscal year as compared to $152.2 million in the corresponding period of last fiscal year.
Some 15 sectors out of 36, showed an increase in the repatriation of profit and dividend, while remaining sectors depicted downward trend. The major repatriation has been registered in power, where foreign investors repatriated $82.8 million in first 10 months of 2010, however the repatriated amount is 43 percent lower than the same period of last fiscal year.
Financial business is second largest sector, where from foreign investors sent abroad an amount of $78.7 million during the period against some $70 million in same period of last fiscal year. Electronics, tourism and information technology are three sectors, where from not a single penny was sent abroad by the foreign investors during the period. Repatriation from food surged by 20 percent to $37.2 million, $1.2 million from textile sector, $44.6 million from chemical, $17.4 million from pharmaceutical and $19.2 million from transport equipment has been transferred by foreign investors on account of profit and dividend.
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