Repatriation of profit and dividend has posted some 10 percent growth during the first four months of this fiscal year (FY20) supported by higher margins on foreign direct investment.
According to the State Bank of Pakistan (SBP) foreign investors have repatriated some $ 548 million on account of profit and dividend during July-Oct of FY20 compared to $ 497 million in corresponding period of last fiscal year (FY19), depicting an increase of $ 51 million. Cumulatively, some 91percent of repatriated amount was sent as returns on FDI during the first four months of this fiscal year.
Economists said that increasing trend in the repatriation of profit and dividend reflects that the country's economy steadily improving and the foreign investors are getting better profits on their investments. Major outflows have been witnessed in the Oil and Gas Exploration, Financial Business, Chemical, Beverages and Transport as foreign investors have aggressively invested in these sectors during the last few years, they added.
The detailed analysis revealed that repatriation of profit and dividend from Foreign Direct Investment (FDI) is gradually rising, while outflow from Foreign Portfolio Investment (FPI) is on decline
According to SBP, foreign investors repatriated some $ 499.3 million as return on FDI during the July-Oct of the current fiscal year compared to $ 419.4 million in the same period of last fiscal year, showing an increase of 19 percent or $ 80 million.
Similarly, with a decline of 37 percent or $ 28 million, repatriation of profit and dividend from portfolio stood at $ 49 million in July-Oct of FY20 down from $ 77.7 million
Sector wise analysis revealed that some $ 112 million were sent from financial business, $99 million from oil and gas exploration, $44 million from Food sector, $ 77 million from transport and $ 64 million from chemical sector.
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