KARACHI: Repatriation of profit by foreign companies operating in Pakistan amounted to $935.9 million in July-November, up 28.7 per cent from a year ago.

According to data released by the State Bank of Pakistan (SBP) on Thursday, the inflow of foreign direct investment (FDI) was higher than the profit outflow in the five-month period.

FDI in July-November was $1.14 billion, $210.5 millio higher than the total repatriation recorded over the same period.

In the comparable months of 2016-17, the outflow of funds was $726.8 million while FDI amounted to $729.4 m.

FDI witnessed an annual increase of more than 57% in the first five months of the current fiscal year mainly due to Chinese investments that constituted about 73% of the total inflow.

The largest repatriation was witnessed in the category of financial businesses as the outflow amounted to $152.6 million against $145.7 million a year ago.

Power, telecommunications and oil and gas exploration sectors recorded outflows of $124.7 million, $121.5m and $107.9 million, respectively.

In November alone, repatriation amounted to $313.7 million as opposed to FDI of $206.7 million, according to SBP data.

With regard to the repatriation of profits on foreign portfolio investment (FPI), $114 million flew out of the country during the first five months of 2017-18, down 15.3% from a year ago.

Pakistani laws allow foreign investors to own 100% shares in locally run businesses. In addition, there is no bar on repatriating profits to foreign shareholders. The provision is aimed at encouraging foreign investment.



Internews