Oil and gas exploration sector witnesses the highest profit repatriation during Jul-Aug FY20

September 26, 2019 (MLN): Profits and dividends repatriated by multinational companies operating in Pakistan during Jul-Aug FY20 fell to $214.7 million from $240.5 million in the same period last year.

This decrease in profits repatriation signifies that the slowdown in economic activity, falling corporate profits and a sharp devaluation in currency have made it difficult for many foreign companies to repatriate more profits from Pakistan.

According to the latest data released by State Bank of Pakistan (SBP), the Oil and Gas exploration sector has made the highest repatriation of profits during Jul-Aug FY20. Companies under this sector repatriated over $42.2 million, as high oil prices in the international market devised their revenue generation patterns in Pakistan.

The second sector with high profit repatriation from Pakistan is financial business, as it repatriated $31.4 million, compared with $15 million in the same period last year. Profit outflows from transport sector stood at $30 million during Jul-Aug FY20, compared with $6 million in the corresponding period of the last fiscal year.

The companies under chemical sector repatriated $24.9 million during Jul-Aug FY20 when compared with $12 million in the same period corresponding year. On the other hand, profit outflows from food sector went down to $23.7 from $35.3 million in an aforementioned period.

Similarly, companies repatriated $10.3 million profits from beverages sector, facing a decline of 71% in their profits when compared with the same period last year, as they repatriated $10.3 million cash during Jul-Aug FY20.

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