May 12, 2003	Monday	Rabi-ul-Awwal 9, 1424

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ISLAMABAD, May 11: As many as 69 multinational companies have remitted a profit of over $332 million from Pakistan during the first nine months of the current fiscal year which is about 320 per cent higher than the profit sent abroad last year.

The State Bank of Pakistan data obtained by Dawn suggested that 51 out of total 69 foreign companies sent a cumulative profit of $503 million abroad during the last three years.

During fiscal 2000-01, these companies sent $90.8 million profit/dividend abroad. However, the amount declined to $79.9 million in 2001-02. The profit remitted during the first nine months of 2002-03 almost quadrupled to $332 million.

The profit these companies reinvested in Pakistan for expansion has not been included in the SBP list. The profit of 18 remaining companies has also not been included in the list because they re-invested their profit for expansion and value addition. Food chains and other franchise-companies are also not a part of this list.

This sudden surge in the profit of foreign companies has been attributed to profitability of foreign banks, energy sector companies, particularly the independent power producers, and a development of the consumer culture rather than real investment.

Officials said the real worry of the government was that the $10 billion foreign exchange reserves which had been earned through debt rescheduling and remittances sent by expatriates was going into the non-productive sectors.

The SBP had forwarded this data to the finance ministry to place it on the National Assembly record but the ministry withheld it to avoid criticizm by the opposition.

The International Power Company of UK, which runs two thermal power projects in the country — Hubco and Kapco — was the single largest company to remit around $174 million profit/dividend from Pakistan during the first three quarters of the current fiscal.

Hubco remitted over $101 million this year which is almost ten times higher than $11.3 million it sent abroad last year. Similarly, Kapco which could not remit profit last year was able to sent $73 million to the UK this year.

In total, five power companies were able to remit more than $260 million during the first nine months of the current year. Besides Hubco and Kapco, AES Lalpir and AES Pakgen sent $53.524 million and $25.821 million, respectively, while Habibullah Coastal remitted $5 million. All three are US-based.

Similarly, ANZ Grindlays Bank remitted $4.725 million this year as compared with $1.175 million it sent last year, ABN-Amro Bank sent $9.5 million this year as against $6.15 million last year. Standard Chartered Bank sent $7.215 million against last year’s zero profit, while Bank of Tokyo remitted $3.708 million against $0.94 million it sent last year. Habib Bank AG Zurich remitted $5.030 million this year compared with last year’s $3.805 million.

Abbot Laboratories remitted $4 million in three years, Alcatel (Telecom) $0.200 million, Avantis Pak $0.600 million, BASF Pakistan $0.655 million, Berger Paints $0.147 million, Clariant Pakistan $2.086 million, Coates Lorrilleux $0.629 million and Continental Biscuits $1.258 million.

Daewoo Express Bus sent $0.105 million in three years, DHL $0.964 million, Engro Vopak $1.682 million, FMC United $0.318 million, Gillette Pakistan $1.089 million, General Tyre and Rubber $0.180 million, Gestetner $0.83 million, GlaxoWellcome $2.052 million, Hoechst Morian Russel $0.145 million, ICI Pakistan $3.190 million and Johnson & Johnson $0.115 million.

Similarly, Knoll Pharma remitted $0.978 million, KSB pumps $0.124 million, Lakson Tobacco $1.674 million, Lever Brothers $27.4 million, Macknion Mackenzi $0.234 million, Maersk $0.459 million, Muller & Phipps $0.584 million, Nestle $8.163 million, Pepsi Co $19 million, Rhone Polenc $0.945 million, Roche Pakistan $10.6 million and Shell Pakistan $0.090 million.

Shell Gas remitted $1.708 million, Siemens Pakistan $0.276 million, Singer Pakistan $0.282 million, Smith Kline $0.073 million, Stark IBI $0.082 million, Telecard $0.758 million, Tri Pak films $0.050 million and United Liner Agencies $0.438 million.