Profit outflow rises to $600m

Updated January 02, 2020

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Profits outflow on FDI during the 5 months were $600m compared to $562m in the same period of last fiscal. — Reuters/File
Profits outflow on FDI during the 5 months were $600m compared to $562m in the same period of last fiscal. — Reuters/File

KARACHI: Repatriation of profits and dividends on foreign direct investment (FDI) in Pakistan increased to $600 million during the first five months of FY20, reflecting enhanced profits of companies having foreign investment.

Latest data issued by the State Bank on Wednesday revealed that profits on FDI increased. However, profits on portfolio investment significantly dec­reased during this period.

Profits outflow on FDI during the 5 months were $600m compared to $562m in the same period of last fiscal while the outflow as payment against portfolio investment was $70m compared to $106m of last fiscal year.

The data shows that foreign investment in the country produced a better result as profitability was higher than previous fiscal.

The highest outflow was from the manufacturing sector at $204m. However, the outflow in the previous fiscal year from the same sector was higher at $233m.

The biggest increase in profits outflow was in financial and insurances sector which jumped by $74m to $117m during the 5 months. Last year the profit outflow from the same sector was $43m.

The profit outflow from the transport and storage sector increased by $65m to $94m; against an outflow of $29m in the same period of last fiscal.

Outflow from mining and quarrying increased to $101m compared to $70m in the same period last fiscal. However, biggest decline was noted in the outflow from electricity and gas sector which fell to $28 million compared to $62m in the same period of last fiscal.

Published in Dawn, January 2nd, 2020