July-October: foreign investors repatriate $200 million

The foreign investors repatriated over 200 million dollars aboard on account of their profit and dividend despite slackness in Pakistan’s economy and global economic recession. However, the repatriated amount during the first four months of current fiscal year was some 27.5 percent lower than in same period of last year.
Repatriation of profit and dividend amounted to 200.5 million dollars during July-October period, as compared to 276.7 million dollars of last fiscal year, depicting a decrease of 76.2 million dollars. Foreign direct investment also decline mainly due to global economic recession and investors’ reservation over country’s law and order The State Bank said that the country attracted 621.8 million dollars foreign direct investment (FDI) in July-October of current fiscal year against 1.329 billion dollars in the same period of fiscal year 2009.
Foreign investors repatriated 168.1 million dollars on account of return on FDI in July-October against 227.7 million dollars in the same period of last fiscal year, depicting a decline of 26 percent, or 59.6 million dollars. During the period, return on foreign private investment also decreased by 34 percent, or 6.5 million dollars, to 32.5 million dollars from 49 million dollars.
Some 14 sectors out of some 36 showed downward trend in the repatriation of profit, while remaining all sectors depicted some increase. Food, sugar, textile, chemical, transport and communication are some leading sectors where from millions of dollars have been sent abroad by foreign investors. The major repatriation was registered from communication sector, wherefrom foreign investors repatriated 42.7 million dollars in July-October against 26.7 million dollars of same period of last fiscal year, depicting an increase of 60 percent.
Food sector was second largest sector, wherefrom foreign investors sent abroad 22.9 million dollars against 15.2 million dollars of last fiscal year. Repatriation from power sector declined by 57 percent to 20.1 million dollars from 46.6 million dollars, while financial business repatriation stood at 7.3 million dollars with a decline of 67 percent.

Copyright Business Recorder, 2009