ISLAMABAD – Foreign and Multinational Companies book high profits, profitrepatriation takes a toll on economy of Pakistan.
Foreign and multinational companies in selected sectors continued to bookprofit in Pakistan despite the prevailing economic challenges. The overallprofit repatriation of foreign investors showed an impressive double-digitgrowth of 10 percent in the first half of the financial year 2019-20.
According to the State Bank of Pakistan (SBP), profit repatriation offoreign and multinational companies surged to $836.3 million in July toDecember 2019 as compared with $759.5 million recorded in the similarperiod of last financial year.
Overall, the business climate in the country is witnessing a tough timemainly due to a slowdown in the economy due to high-interest rates, therising cost of doing business, etc.
However, some of the companies maintained their revenue streams andrepatriated handsome profits to their headquarters.
The sectors that recorded growth in profit repatriation include financialbusiness including foreign banks which saw a growth of 37 percent in thesaid period.
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This sector repatriated $155.6 million. The transport sector repatriated aprofit of $139.5 million which is over three times higher than the lastyear. It was followed by oil and gas exploration and production companieswhich improved their balance sheets due to higher oil prices in theinternational markets.
The sector made a profit repatriation of $118.8 million from July toDecember 2019, which is 50 percent higher than the previous year. Thechemical sector also recorded a double growth in the profit repatriation inthe said period at $85 million.
The stability of Rupee against Dollar played a significant role in theprofit repatriation of the companies working under these sectors.
Traditional sectors that recorded profit repatriation during this periodincluded textile, food, beverages, cement, transport equipment, power,construction, communication, tourism, etc.
