The outflows of profits and dividends on foreign investment have reached $1.146 billion during the first eight months of the current fiscal year, marking a nine percent increase compared to the same period of the previous fiscal year.
According to the State Bank of Pakistan (SBP), the profit outflows during the first eight months of the last fiscal year were $1.050 billion. Similarly, the profit outflows from foreign portfolio investments also significantly increased, going up to $108.6 million in the first eight months of the current fiscal year, compared to $64.7 million in the same period last year.
The United Kingdom was the biggest beneficiary of the profits and dividends and received $230 million during this period which was less than the $362 million it earned in the same period of last year.
The second biggest beneficiary was the United States which received profits worth $156 million but it was also lower than the $196 million it earned in the same period of last year.
Other prominent countries included Switzerland which received profits of $101 million, the Netherlands $90 million, Hong Kong $86.6 million, and China $81 million.
The sector-wise data shows that the highest outflows of profits and dividends were for banks as they surged to $182 million, much higher than the $136.6 million they earned during the same period of last year.
The food sector was the second-biggest beneficiary with profits of $116.3 million but it was much less than the $221 million it earned in the same period of last year.
The oil and gas exploration sector earned a profit of $108.6 million, compared to $91 million last year. The biggest change was noted in the power sector which received a profit of $125 million compared to just $33.9 million in the first 8 months of the current fiscal year.
The profits outflow for telecommunication registered a significant drop and stood at $68.5 million, compared to $104.7 million last year. However, the overall profits outflow of communications registered a much smaller drop and stood at $106 million, compared to $119.6 million in the same period of last year.
