Foreign investors repatriate over $100 million abroad

The foreign investors have repatriated over 100 million dollars abroad on account of profit and dividend, despite slackness in the Pakistan’s economy and global economic recession. However, repatriated amount during the first two months of the current fiscal year is some 3.4 percent lower than the repatriation in the same period of the last fiscal year 2010.

Overall repatriation of profit and dividend stood at 100.9 million dollars during the July-August of the current fiscal year, as compared to 104.4 million dollars in corresponding period of the last fiscal year, depicting a decrease of 3.5 million dollars.

Repatriation of profit was constantly on surged during the last few years due to rising economic activities in the country. However, slow economic activities followed by global meltdown have reduced the profitability of foreign companies during the current fiscal year, as a result repatriation of profit and divined is on decline.

The central bank on Friday revealed that country has attracted 171.4 million dollars foreign direct investment (FDI) in July-August of current fiscal year related to 344.5 million dollars in the same period of fiscal year 2010. Foreign investors have repatriated 85.7 million dollars on account of return on FDI in the first two months of the current fiscal year over the 90.8 million dollars in the same period of the last fiscal year, depicting a decline of 14 percent.

While, during the period return on foreign private investment has posted an increase of 12 percent or 1.6 million dollars to 15.2 million dollars from 13.2 million dollars. Only 8 sectors out of some 36 sectors, showed increase in the repatriation of profit, while remaining all sectors depicting downward trend.

Beverages, Textile, Fertiliser and personal services are leading sector, where from not a penny has sent abroad by the foreign investors. The major repatriation has registered from the power sector, where from foreign investors has repatriated 47 million dollars in July-August of fiscal year 2010-2011 over the repatriation of 34 million dollars in corresponding period of the last fiscal year, depicting an increase of 38 percent.

It may be mentioned here that the government of Pakistan has allowed a 100 percent repatriation of profit to the foreign investors. Therefore, foreign investors are fully enjoying the government’s policy by transferring their profit back since 2004.