Profits repatriation by overseas investors falls 17% YoY in 1QFY22

October 26, 2021 (MLN): Multinational companies operating in Pakistan repatriated $477.7 million in profit and dividends on investments in the country during the first quarter of the ongoing fiscal year which was 17% lower than the profits of $576.8mn repatriated in the corresponding period last year, the central bank data showed on Tuesday.

The data further revealed that during the period, foreign companies repatriated $451mn worth of profit against the foreign direct investments (FDI) in various businesses compared to $559mn in SPLY. While the portfolio investment stood at $26.7mn, compared with $17.8mn in the same period a year earlier, marking a significant growth of 50% YoY.

To note, FDI declined by 4% YoY to $439.1mn during 1QFY22, i.e., July to September, as compared to FDI of $457.6mn reported in the corresponding period last year.

However, in the month of Sept’21 alone, repatriation of profits and dividends on investment by the foreign firms reached $451mn.

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 $115.8mn during the 1QFY22, dropped by 51.6% YoY, compared to $239mn in 1QFY21.

The United States witnessed the repatriation of the second-highest profits as the country repatriated $93mn abroad during the period under review, compared to $88.9mn during the same period last year.

Third in line is the Netherlands which repatriated $48.7mn from Pakistan during 1QFY22, up by 7.6x YoY as during the last year within the same period, the country remitted only $6.4mn as profit income from Pakistan.

Meanwhile, Switzerland with profit repatriation stood at $42.8mn which is 27.5% YoY higher when compared to the previous year’s repatriation.

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