October 30, 2019 (MLN): Profits and dividends repatriated by multinational companies operating in Pakistan during 1QFY20 increased to $349.2 million from $347.6 million in the same period last year.
This marginal increase by 0.45% in profits repatriation showed slow economic activities, falling corporate profits, and depreciation of PKR against USD during the quarter.
According to the latest data released by the State Bank of Pakistan (SBP), the Oil and Gas exploration sector has made the highest repatriation of profits during 1QFY20. Companies under this sector repatriated over $72.7 million, up by 31% YoY, compared to the same quarter of last fiscal year, owing to higher oil prices in the international market which generated their revenue in Pakistan.
The data revealed that the second sector with high-profit repatriation from Pakistan is financial business, as it repatriated $66.2 million, compared with $28.6 million in the same period last year. Profit outflows from the chemical sector stood at $48, around 2.7 times higher when compared to the corresponding period of the last fiscal year.
Next followed by the companies under the transport sector which repatriated $35.7 million during 1QFY20 when compared with $10.4 million in the same period corresponding year.
However, profit outflows from the beverage sector fell by 47% from $53.3 million to $28 million in an aforementioned period.
Similarly, companies repatriated $27.6 million in profits from the food sector, facing a decline of 47% in their profits when compared with the same period last year.
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