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HomeEconomyProfit repatriation increases to $1.6bn during 11MFY22

Profit repatriation increases to $1.6bn during 11MFY22

June 28, 2022 (MLN): Repatriation of profit and dividends by foreign investors increased by 7% YoY to $1.6 billion in 11MFY22 compared to the $1.50bn recorded in the same period of FY21, mainly due to healthy corporate profits earned by multinational companies, the latest data released by the central bank showed.

profits and dividends only on foreign direct investment (FDI) during July-May FY22 were $1,447.2 million as against $1,382m in the same period of last year.

The data revealed that during the period, the profit and dividend on foreign direct investment (FDI) during 11MFY22 were recorded at $1.45bn, up by 5% against $1.38bn in the same period last year.

While the outflow as payment against portfolio investment stood at $153.3mn, compared with $114.2mn in the same period a year earlier, marking a significant growth of 34% YoY.

To note, the profit outflow on account of FDI is almost the same as the FDI inflows amounting to $1.6bn during July-May of FY22.

In the month of May’22 alone, repatriation of profits and dividends on investment by the foreign firms clocked in at $136mn, data showed.

Sector-wise

The data shows that the major sectors that repatriated relatively higher profits include the Financial Businesses, Power, Communication, Food, Oil & Gas Exploration, and Transport sector among which financial businesses repatriated the highest profits of $269.3mn during the period to overseas, against $318mn in the same period last fiscal year, showing a decline of 15% YoY.

The data further revealed that profit outflows from the Power sector clocked in at $198.8mn during July-May FY22 against $45.2mn in the corresponding period last fiscal year. Profits outflow from the Communication sector remained same at $185mn in 11MFY22.

The Food sector’s profit outflow was $152.7mn, down by 34% YoY during the period under review.

The Oil & Gas Exploration sector repatriated $146.2mn in 11MFY22, which was 36% YoY higher when compared with $107.9mn in the same period previous fiscal year.

The Transport sector’s profit outflow was $95.1mn, showing a decrease of 28% against $131.6mn reported in the SPLY.

Country-wise

A country-wise break up of data on repatriation of profit released by SBP revealed that firms and individual investors belonging to the UK dispatched the single largest profit of $337.4mn during the period compared to $3534.7mn in the same period prior fiscal year.

The United States witnessed the repatriation of the second-highest profits as the country repatriated $200.6mn abroad during the period under review, compared with $238mn in the previous year.

Third in line is the Netherlands which repatriated $166mn from Pakistan during 11MFY22 while the country remitted $37.5mn as profit income from Pakistan in 11MFY21.

Next followed by Switzerland with profit repatriation of $130.7mn which was 59% YoY higher when compared with $82.2mn during July-May FY21.

Copyright Mettis Link News

 

Posted on: 2022-06-28T12:10:16+05:00

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