KARACHI: The outflow of profits and dividends on foreign direct investment (FDI) during the first 10 months of the current fiscal increased by 14 per cent reflecting the improved performance of the companies having foreign interest.

The State Bank’s latest data issued on Friday showed that the outflow of profits and dividends during July-April FY21 was $1.214 billion compared to $1.064bn in the same period of FY20.

However, the outflow of profits on portfolio investment significantly dropped during the current fiscal year to $98m against $166.3m in the same period of last fiscal year.

The data shows that the highest profit outflow was noted from financial business (banks) which jumped to $280.6m during 10MFY21 compared to $178.4m in 10MFY20.

Outflow from communication also significantly increased to $123.8m compared to $72m of last year. The oil and gas exploration which has been an attraction for foreign investment noted sharp decline in profit outflow at $97m in 10MFY21 against $215.7m in 10MFY20.

The outflow of profits and dividends from foods sector was almost double than the previous year as it amounted to $119.5m compared to just $58m in the corresponding period last year.

The profit repatriation from transport sector fell to $112.4m 10MFY21 from $165.8m 10MFY20. From tobacco and cigarettes sector, the profit outflow was $83m in 10MFY21 against $35m 10MFY20. The chemical sector also noted a decline in the profits outflow as it was $83m compared to $102.7m in the same period of last fiscal year.

Published in Dawn, May 29th, 2021