July 29, 2021 (MLN): Multinational companies operating in Pakistan repatriated $1.62 billion in profit and dividends on investments in the country during FY21 which was 21% higher than the profits of $1.35 billion repatriated FY20.
This was due to improved profitability and macroeconomic indicators which strengthened foreign investors’ confidence in Pakistan’s economy.
However, in the month of June alone, repatriation of profits and dividends on investment by the foreign firms declined by 4% YoY to $125.8 million, SBP data showed.
The data further revealed that during FY21, foreign companies repatriated $1.49 billion worth of profit against the foreign direct investments (FDI) in various businesses compared to $1.2 billion in FY20. Moreover, profits on equity investments stood at $131.9 million compared to $142.9 million a year earlier, marking a decline of 8% YoY.
The data shows that the major sectors that repatriated relatively higher profits include Financial Businesses, Communication sector, Food, Transport sector, Chemicals, Tobacco & Cigarettes, and Oil & Gas Exploration sector, among which Financial Businesses repatriated highest profits of $337.3 million during FY21 to overseas, against $238.8 million in the last fiscal year, showing a growth of 41% YoY.
The data further revealed that Profit outflows from the Communication sector jumped to $234.2 million from $154.4 million. Profits outflow from the Food sector mounted by 288 YoY to $231.4 million against an inflow of $59.6 million in FY20.
The Transport sector repatriated $136.1 million in FY21, which was 23% lower when compared with $176.1 million in the previous fiscal year.
The Chemical sector repatriated $133.8 million, which was 8% higher as they had sent $124.4 million during FY20.
The Tobacco & Cigarettes segment repatriated $125.7 million in FY21, compared with $37.4 million in FY20.
The Oil & Gas Exploration sector repatriated 57% lower profits during the period under review which amounted to $108.1 million, while in FY20, the sector repatriated $250.6 million.
A country-wise break up of data on repatriation of profit released by SBP revealed that firms and individual investors belonging to the United Kingdom dispatched the single largest profit of $546.7 million during FY21 compared to $282 million in the prior fiscal year.
The United States witnessed the repatriation of the second-highest profits as the country repatriated $270.1 million abroad during the period under review, compared with $192.7 million in the previous year.
Third in line is Malta which repatriated $91.7 million from Pakistan during the period, while last year, the country remitted $55 million as profit income from Pakistan.
Next followed by Switzerland with profit repatriation of $87.5 million which was 8% lower when compared with last year's figures.
Furthermore, companies from the Netherlands repatriated $82.2 million in FY21 compared to $45.3 million in FY20.
Firms from Hongkong repatriated $74.5 million in FY21 compared to $147.1 million in FY20.
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