June 26, 2019 (MLN): Outflow of profits and dividends on foreign investments from the country dropped 25 percent to $1.67 billion in the eleven months of fiscal year 2018-19, as compared to $2.2 billion sent during the corresponding period of last year, the SBP’s data showed on Tuesday.
On monthly basis, repatriation of profit/ dividend on foreign investment showed a massive growth of over $247 million in May 2019 as the latest figure logged in at $436.1 million which is 2.3x higher than the repatriation recorded last month.
Out of total amount repatriated during eleven months of FY19, $1.44 billion were repatriated on Foreign Direct Investment (FDI) and $228 million were repatriated on Foreign Portfolio Investment (FPI)
Meanwhile, during the month of May alone, $410.2 million were repatriated on FDI in specific, while $26 million were repatriated on FPI.
The SBP’s data showed that during Jul-May 2019 some key sectors such as food, power, communications, financial business, and oil and gas exploration remitted lower profits to their parent companies abroad as compared to Jul-May 2018.
The power sector repatriated $88.8 million worth of profits, whereas it had repatriated a much higher profit of $184.7 million last year.
Profit outflows from the financial businesses stood at $137.2 million, compared with $194.1 million in the nine months of FY18.
Outflow of profits from telecommunications amounted to $71.3 million during July-March. The outflows were $166.8 million in the corresponding period last year. Energy firms repatriated $167.9 million, compared with $202 million in the same period last year.
Provisional figures released by the SBP reveal that repatriation from the Communication sector has been recorded as the largest source of repatriation on foreign investment during these last eleven months i.e. July – May, a sum of $261.1 million.
Profit outflows from the financial businesses stood at $251.1 million, compared with $280 million in the eleven months of FY18.
Outflow of profits from Oil and Gas Exploration sector amounted to $215.9 million during July-May compared with $245.9 million. in the corresponding period last year. Food sector repatriated $177.6 million, compared with $210.3 million in the same period last year.
For the month of May in particular, $154.9 million profit repatriation on FDI was recorded for Communication sector, which is the largest amount for the month. The sector that follows next in line is Food with a repatriation of $ 91.2 million.
During the prior month (April 2019), the largest source of repatriation on FDI was the Financial businesses sector with a repatriation of $ 48.7 million.
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