Repatriation of profit rises 3.3pc

During 5MFY11

Ghulam Raza Rajani

KARACHI: Repatriation of profit by the foreign companies has increased 3.3 per cent in first five-month of the fiscal year 2011, according to the State Bank of Pakistan data on sector-wise repatriation of profit.

From July to November 2010, the repatriation of profit by foreign companies in Pakistan surged to $288 million  against $279 million witnessed in the corresponding period last year. During the period under review, profit repatriation on account of foreign direct investment (FDI) stood at $226 million which represents 78.6 per cent of total repartition while on foreign portfolio investment (FPI) it stood at $61.6 million (21.4 per cent of total repartition).
Telecommunications sector remained the major contributor to this outflow in terms of dollar, as their companies sent $49.8 million against $44.9 million sent abroad by the sector in 4MFY10.
Likewise, oil and gas exploration companies have transferred $48.3 million profit/ dividend in 5MFY11 – a surge of 135.6 per cent — against $20.5 million transferred in the same preceding period.
Furthermore, power sector witnessed repatriation of $47.2 million against $35.8 million in the identical period last year. Similarly, repatriation of profit by the financial business rose to $34.3 million compared with $9.9 million during the same period last year.

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