Repatriation in April magnifies over the month as dividend payouts come into play

May 31, 2019 (MLN): Repatriation of profit/ dividend on foreign investment showed a mammoth growth of over $133 million in April 2019 as the latest figure logged in at $188.4 million which is 3.4x higher than the repatriation recorded last month.

Investors stationed globally had repatriated a sum of $55 million in March 2019.

Out of the total amount repatriated in April, $41.7 were repatriated on Foreign Portfolio Investment (FPI) and $146.6 million were repatriated on Foreign Direct Investment (FDI).

Analysis of the data shows that repatriation on both FPI and FDI have swollen by 3.4x over the month.

Keeping in mind that Pakistan’s stock market performance in April was a little volatile but full of losses, the growth in repatriation on FPI came about despite that, as dividends flew in with year-end and/or quarter end on March 30^th, 2019.

The aforesaid data which was compiled by the State Bank of Pakistan shows that the cumulative repatriation during ongoing fiscal year 2018-2019 (FY19) stands at $1.24 billion, against a corresponding repatriation of $1.77 billion recorded in the same period, last year.

While this partly reflects reduction in overall foreign investments this year, repatriation has also slipped due to devaluation of the rupee and falling stock market which has resulted in less returns on portfolio investment.

Between FDI and FPI, the larger negative impact during the period (July – April 2019) came from the fallout in repatriation on FDI this year which reduced from $1.5 billion to $1.1 billion, marking a decline of $476 million over the year.

Meanwhile repatriation on FPI reduced by $58 million, logging in at $202 as of April.

The maximum sum was repatriated from the returns earned within the oil & gas exploration companies, a cumulative total of $215.9 million. Next largest repatriation was accounted for the financial business industry within which $202.3 million were repatriated this period.

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