Foreign firms repatriate $204.3 million in July-August

KARACHI: Foreign companies repatriated $204.3 million in profits during the first two months of the current fiscal year of 2016/17, up 74.16 percent year-on-year, the central bank said on Tuesday.   

The State Bank of Pakistan (SBP) data said repatriation of profits and dividends earned by the multinational firms amounted to $117.3 million in the same period of the last fiscal year.

In August alone, foreign investors pulled $58.5 million out of the country.    The country, however, attracted $112.6 million in foreign direct investment in the July-August period of FY17. Analysts said the foreign earnings were robust due to higher returns.   

The SBP said companies belonging to energy, power and transport sectors sent back profits and dividends during the period under review.  The petroleum refining sector repatriated the highest $68.6 million to their shareholders/sponsors in foreign countries in July-August FY17.   The repatriated profits of the power sector were $26.3 million in July-August FY17 as compared to $10.6 million during the corresponding months of FY16. The transport sector repatriated $18.2 million as against $14.6 million.  

Other sectors were chemicals ($23 million), oil and gas exploration ($17.9 million) and pharmaceuticals ($16.1 million). Banks transferred $13.8 million in profits in July-August FY17 as against $30 million a year ago.