August 28, 2024 (MLN): Foreign investors' repatriation of profit and dividends rose significantly to $139.13 million in July compared to $2.16m worth of repatriation in the same period last year, the latest data issued by the central bank revealed.
The data further revealed that during the period, foreign companies repatriated $133.86m worth of profit against the foreign direct investments (FDI) in various businesses compared to $1.53m in SPLY, marking an increase of around 8633.5% YoY in July.
The outflow as payment against portfolio investment stood at $5.27m, compared with $0.62m in July 2023, witnessing a growth of 745.88%.
This massive outflow is attributed to the State Bank of Pakistan (SBP) permitting foreign companies to repatriate profits and dividends.
Sector-wise:
Sectorial representation of the data shows that the major sectors that witnessed the highest repatriation include the Power, Tobacco & Cigarettes, Transport, Financial Business and Chemicals sectors.
Among these, the Power sector repatriated the highest profits of $29.5m in July to overseas.
The data further revealed that Profit outflows from the Tobacco & Cigarettes sector clocked in at $22.13m.
Profits outflow from the Transport sector increased significantly to $21.25m in FY24.
The payments made on total foreign investment under the Financial Business and Chemicals sector stood at $16.09m and $13.49m respectively during the review period.
Country-wise:
A country-wise break of data on repatriation of profit released by SBP revealed that firms and individual investors in France dispatched the single largest profit of $30.6m during July.
The United Kingdom witnessed the repatriation of the second-highest profits as the country repatriated $29.94m abroad during FY24, compared with $0.15m in FY23.
Third in line was the United States which repatriated $22.08m from Pakistan, up as compared to the number during SPLY, when the country remitted $0.53m as profit income from Pakistan.
Next in line was U.A.E with a profit repatriation of $20.74m during the review period.
Copyright Mettis Link News
Posted on: 2024-08-28T15:41:01+05:00
