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HomeEconomyDevaluation and stock performance weigh down repatriation in FY19 by 34%

Devaluation and stock performance weigh down repatriation in FY19 by 34%

April 29, 2019 (MLN): Foreign investors have repatriated a total of $55 million in March 2019, of which $42.8 million were repatriated on Foreign Direct Investment (FDI) and $12.3 million were repatriated on Foreign Portfolio Investment (FPI).  

The aforesaid data which was compiled by the State Bank of Pakistan shows that the cumulative repatriation during ongoing fiscal year 2018-2019 (FY19) stands at $1.05 billion, against a corresponding repatriation of $1.6 billion recorded in the same period, last year.

While this partly reflects reduction in overall foreign investments this year, repatriation has also slipped due to devaluation of the rupee and falling stock market which has resulted in less returns on portfolio investment.

Between FDI and FPI, the larger negative impact during the period (July – March 2019) came from the fallout in repatriation on FDI this year which reduced from $1.4 billion to $889 million, marking a decline of $511 million over the year.

Meanwhile repatriation on FPI reduced by $63 million, logging in at $160.3 as of March.

During the period, the largest sum was repatriated to the United Kingdom ($222 million) while United States took the second position with a cumulative repatriation of $172 million.

The maximum sum was repatriated from the returns earned in within the manufacturing industry, a cumulative total of $384 million. Next largest repatriation was accounted for the Mining and quarrying industry within which $168.2 million were repatriated this period.

Meanwhile, the wholesale and retail trade recorded a repatriation of $115.3 million whereas financial and insurance activities recorded $137.5 million.

Copyright Mettis Link News

Posted on: 2019-04-29T15:17:00+05:00


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