Profits outflow up 10pc

Updated November 30, 2019

Email

SBP data shows total profit and dividend outflow rose to $548 million compared to $497m in the same period last year. — Reuters/File
SBP data shows total profit and dividend outflow rose to $548 million compared to $497m in the same period last year. — Reuters/File

KARACHI: Repatriation of profit and dividends against the foreign investment in the country increased by over 10 per cent in the first four months of current fiscal year.

The State Bank of Pakistan’s (SBP) latest data released on Friday showed the total profit and dividend outflow rose to $548 million compared to $497m in the same period last fiscal year.

Most of the profit outflow was against the foreign direct investment (FDI) while those against the portfolio investments fell by 37pc to $48.9m during the four months under review.

On the other hand, the FDI during the period witnessed an increase of 238pc to $650m indicating that profit outflows could see higher trend in near future.

Moreover, the country also received a record $1 billion investment in the Treasury bills. The investments could enhance the quantum of profit outflows from the country.

The SBP data showed that highest outflow of profits was from the manufacturing sector at $200m despite being slightly lower than $209m in the last fiscal year.

The financial and insurance sector paid a profit of $112.4m during the four months against $69.3m in the previous year. Mining and quarrying paid $97.8m compared to $78.6m.

The outflow from transport and storage was significantly higher than the previous year at $85.4m compared to $26.4m in the same period last fiscal year.

The average monthly profit outflow was $137m while the outflow in October was $199m indicating the increasing trend.

The government has been making efforts to reduce these outflows and tapping every option to increase the inflows.

Published in Dawn, November 30th, 2019