KARACHI: Outflow of profits and dividends on foreign investment in the country decreased in the first two months of the current fiscal year FY20, reported the State Bank of Pakistan (SBP) on Thursday.

The outflow dropped to $214.7 million during July-August of this fiscal year against an outflow of $240.5m in the same period last year.

The payments on foreign direct investment during the period were $197.4m ($218.8m last year) while the payments on portfolio investment were $17.3m ($21.7m last year).

The highest outflow was from the oil and gas exploration sector at $38.3m compared to $35.2m in the corresponding period last year.

The outflow of profits from food and financial business was $23.7m from each sector. However, the profit repatriation from transport sector was significantly higher as it rose to $30m.

On the other hand, outflow from the chemical sector was also significantly higher than the last year; $23.1m against $9.8m respectively.

Both the profit outflow and inflow of FDI have been declining reflecting low attraction for the foreign investors.

The government claims the economy has come out from the crisis period but response from both the domestic as well as foreign investors suggests otherwise.

Published in Dawn, September 27th, 2019