Outflows from foreign investments increase by $210 million in FY 18

Outflow of profits and dividends from foreign investments has increased by $210.4 million in the fiscal year 2017-18 compared to the previous fiscal year, 2016-17, as foreign investors took home a total of $2.32 billion in FY 18 as against $2.11 billion in FY 17.

In the month of June 2018, repatriations fell to $83 million, compared to repatriations of $464.4 million in May. During the same month last year, repatriations of profits and dividends on foreign investment were $224.5 million.

On a month on month basis, the fall in total repatriations is a result of the decrease in outflows on account of Foreign Direct Investments, which fell from $433.9 million in May 2018 to $62.8 million in June. During the same month in 2017, outflows of profits and dividends from FDI were at $196.8 billion.

According to provisional data released from the State Bank of Pakistan on Thursday, repatriation of profits and dividends on account of Foreign Direct Investments (FDI) jumped to $2 billion in FY 18 compared to $1.73 billion in the Fiscal year 2016-17, increasing by $273 million over the year, despite having reduced in June.

Pakistan received a total of $2.767 billion in foreign direct investments during the fiscal year 2017-18, while outflows from profits and dividends on these investments totaled $2 billion, leaving a net inflow of merely $767 million, a serious shortage in the foreign investment accumulation of the country.

Outflow of profits and dividends from Foreign Portfolio Investments, on the other hand, decreased by $62.86 million in the FY 18, as provisional figures reveal that $311.5 million were sent back on account of foreign portfolio investments, compared to $374.4 million in the last fiscal year.

Posted on: 2018-07-27T15:43:00+05:00