Foreign companies operating in Pakistan have repatriated around $892.3 million as profits and dividends during first half (July–December) of the fiscal year 2020/2021 (1HFY21), according to data released by State Bank of Pakistan (SBP) on Tuesday.
The repatriation of profits and dividends was 6.7pc higher when compared with $836 million in the first half of the last fiscal year.
An amount of $840 million was repatriated during the first half of FY21 against foreign direct investment (FDI), as compared with $743 million in 1HFY20, showing an increase of 13pc. The repatriation of funds against portfolio investment, however, fell to $52.2 million during the half under review as compared with $93 million in 1HFY20.
The food sector repatriated highest profits of $171.5 million during 1HFY21, against $53.4 million in the corresponding period of last fiscal year, showing a growth of 221pc YoY.
On the other hand, profits outflow from financial businesses dipped 2pc YoY to $122.5 million, as against $125.5 million in July-Dec FY20. Similarly, the transport sector repatriated $74.1 million in July-December FY2021, which was 47pc lower when compared with $139.2 million in the corresponding period of FY20.
Outflows from the communication sector, however, jumped to $119.3 million from $33 million.
Among other sectors, tobacco & cigarettes segment repatriated $76.5 million in 1HFY21, compared with $35.1 million in the same period of FY20; oil & gas exploration sector repatriated $69.2 million, 38pc lower than $111.8 million in July-Dec FY20; whereas chemical sector repatriated 32pc lower profits, amounting to $46.8 million compared with $69.1 million in the corresponding period last year.
A country-wise break-up of data revealed that firms and individual investors belonging to the United Kingdom dispatched the largest profits of $303.8 million during 6MFY21 compared to $155.7 million in the same period the prior year.
The United States witnessed the repatriation of the second-highest profits as the country repatriated $133.6 million abroad during the period under review, compared with $100.1 million in the corresponding period the previous year.
Third in line was Malta, which repatriated $91.7 million from Pakistan during the period. In the corresponding period last year, the country did not remit any profits or dividend income from Pakistan.
Switzerland stood fourth with profit repatriation of $53.4 million, 12pc lower when compared with last year, whereas Hong Kong repatriated $44 million in 6MFY21 compared to $98.9 million in July-Dec FY20; and Chinese firms repatriated $35.9 million abroad during the period under review, compared with $92.1 million in 6MFY20, depicting a fall of 61pc YoY.