February 24, 2023 (MLN): Repatriation of profit and dividends by foreign investors plummeted by 78.27% YoY in 7MFY23 to $220 million compared to $1.01 billion in the same period last year, the latest data issued by the central bank revealed.
The data further revealed that during the period, foreign companies repatriated $184.1mn worth of profit against the foreign direct investments (FDI) in various businesses compared to $908mn in SPLY. While the outflow as payment against portfolio investment stood at $36.1mn, compared with $105.5mn in the same period a year earlier, marking a significant growth of 65.7% YoY.
To note, the repatriation of profit on account of FDI is lower than overall FDI which amounted to $683.5mn during the first seven months of this fiscal year.
Similarly, in the month of Jan’23 alone, repatriation of profits and dividends on investment by the foreign firms dropped by 97.6% YoY to $2.9mn compared to $122.3mn in Jan’22.
Sector-wise:
The data shows that the major sectors that repatriated relatively higher profits include oil & gas explorations, power, mining & quarrying, and financial business among which oil & gas exploration repatriated the highest profits of $87.2mn during the period overseas, against $80.5mn in the same period last fiscal year, showing a growth of 8.2% YoY.
The data further revealed that Profit outflows from the power sector clocked in at $32.2mn while during July-Jan FY22, the sector fetched a net $98.6mn as profit, down by 67.3% YoY.
The communication sector repatriated $106mn during the period under review, which was 11% YoY lower when compared with $119.5mn in the same period previous fiscal year.
The mining and quarrying sector repatriated $31.5mn, whereas, in the corresponding period last year, the sector fetched $10mn as profits.
Investors from financial business repatriated 89% YoY lower profits during the period under review which amounted to $18mn, while in the same period of FY22, the sector repatriated $167.8mn.
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 Hongkong dispatched the single largest profit of $84.3mn during the period, observing a surge of 44% YoY compared to $58.5mn in the same period prior fiscal year.
China witnessed the repatriation of the second-highest profits as the country repatriated $32.7mn abroad during the period under review, witnessing a drop of 54.9% YoY compared with $72.6mn in the previous year.
Third in line is the United States which repatriated $26mn from Pakistan during 7MFY23, down by 82.58% YoY as last year during July-Jan FY22, the country remitted $149.6mn as profit income from Pakistan.
Next followed by the UK with profit repatriation of $15.1mn which was 92% YoY lower when compared with last year's figures.
Copyright Mettis Link News
Posted on: 2023-02-24T12:29:19+05:00
