KARACHI: The outflows of profits and dividends on foreign investments increased by 9 per cent or $96 million to $1.146 billion during the first eight months of this fiscal year, reported State Bank of Pakistan (SBP) on Tuesday.
The profit outflows during the same period of last year were $1.050bn showing that the companies having foreign investments performed better than the previous year.
Similarly, the profit outflows from foreign portfolio investments significantly increased to $108.6m in 8MFY22 compared to $64.7m in the same period of last year.
The biggest beneficiary of the profits and dividends was the UK which received $230m during this period but was less than the $362m it earned in the same period of last year.
The second most benefited country was the United States as it received profits worth $156m but it was also lower than last year’s $196m.
Switzerland received profits of $101m, the Netherlands $90m, Hong Kong $86.6m and China $81m (compared to $50.7m last year).
The sector-wise data shows that the highest outflow of profits and dividends were for financial business [banks] as it increased to $182m compared to $136.6m during the same period of last year.
The food sector was the second most beneficiary of the profits as the sector received $116.3m but it was much less than last year’s $221m. The oil and gas exploration sector earned a profit of $108.6m compared to $91m last year.
The biggest change was noted in the power sector which received a profit of $125m compared to just $33.9m in the first 8 months of the current fiscal year.
The profits outflow for telecommunication significantly dropped to $68.5m compared to $104.7m the last year. However, the overall profits outflow of communications was $106m compared to $119.6m in the same period of last year.
The data analysis shows that the companies have been generating profits for both local as well as foreign investors.
The government has collected record revenues reflecting the high performance of the domestic companies. The prime minister earlier said that the 100 big companies of Pakistan earned a profit of Rs950bn in 2021 and urged them to share it with their employees.
Published in Dawn, March 30th, 2022