Pakistan’s slow economy affected Profit and Dividend Repatriation by foreign investors

Repatriation of dividend and profit by foreign investors increased to $729.6 million in Pakistan in July-May period and reached equal to same period of last fiscal year.

The amount of dividend and profit repatriation decreased 10% in July-April to $609.6 million but observed a massive increase of $120 million in May 2010 which increased the overall amount of dividend and profit repatriation in July-May period of the current fiscal year.

This surge was observed in the first eleven months of the current fiscal year against $729.5 million at the same period last FY.

According to State Bank of Pakistan, there was a slight increase of $0.1million in July-May period during FY 2009-10 compared to same period in FY 2008-09.

Business Recorder reported due to slow economy dividend and profit repatriation observed a 29 percent decline to $319.5 million with a monthly average outflow of $53 million in the first half of the current fiscal year but now it increased to $66 million.

Though FDI saw majority of repatriation of profit and dividend, the overall amount of repatriation through FDI actually declined 4.16%. 66% of the amount repatriated has been sent in FDI. In July-May period, investors sent $544.8 million to their home countries earned through FDI against $568.5 million at the same period last year

On the other hand, repatriation of profit and dividend through Foreign Portfolio Investment (FPI) increased 15% or $23.7 million during July-May period.