KARACHI: The outflow of profits and dividends on foreign investments from Pakistan has increased by over 19 per cent to $2.237 billion in the 11 months of 2017-18.

The State Bank of Pakistan reported on Wednesday that the outflow on foreign direct investment (FDI) rose over 26pc during July-May FY18; but the FDI decreased 1.3pc during this period. The outflow of profits on foreign portfolio investment declined to $291 million against $346.7m in the same period of last fiscal year.

Highest profits and dividends outflow was noted from telecommunication as it reached $329m in 11 months of FY18 while the sector received just $44m FDI during this period.

Power sector leads in remitting funds to investors abroad

Second highest outflow was noted in the power sector at around $221m while it received highest FDI at $760m during the same period.

The outflow from construction sector was the lowest at about $1.8m but the sector received second highest FDI worth $632m. It is believed that the overseas Pakistanis invested heavily in this sector and the profits remained within the country.

The FDIs for chemical sector during this period stood at $17.6m while the outflow of profits was recorded at $121m. A relatively balanced profile was noted in the oil and gas exploration sector, receiving $177m compared to $220m outflow of profits during 11 months of 2017-18.

Financial sector, meanwhile, received $273m in FDI versus the outflow of profits at $207m. In the food sector, outflow hit $206m compared to inflows of $104m.

Published in Dawn, June 28th, 2018