07/10/2008
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Profit repatriation slides 25.5pc in 2MFY09
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Ghulam Raza Rajani
KARACHI: Repatriation of profit by the foreign companies from the country has declined by 25.5 per cent in the first two months of the fiscal year 2008-09 (2MFY09) mainly due to slowdown in economic activities along with depreciating of Pak rupee which ultimately turned expensive to purchase the other currencies, according to the State Bank of Pakistan data on sector-wise repatriation of profit.
Companies operating in the country with foreign shareholding sent $98.6 million abroad in 2MFY09 down from $132.3 million repatriated in the corresponding period last year.
Power sector remained the major contributor to this outflow in terms of dollar as their companies sent $37.4 million compared to $12 million during the same period last year, showing a rise of 212.7 per cent. Oil and gas exploration companies have transferred $12.3 million profit/dividend in 2MFY09 by depicting 60.5 per cent increase as against $7.7 million transferred in the same period last year.
On the other hand, dispatch of profit by the telecommunications sector declined by 88.9 per cent due to higher competition in telecom sector reducing their profit along with further reinvestment in infrastructure.
Foreign investors have transferred $8.8 million profit or dividend from financial sector, $2.9 million from food sector, $2.4 million from chemical sector, and $0.9 million from pharmaceutical & OTC products.
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