KARACHI: The outflow of profits and dividends on foreign investment increased by 23 per cent during the first 11 months of 2021-21, showed data issued by the State Bank of Pakistan (SBP) on Monday.

The total outflow of profits and dividends during the July-May period rose to $1,496 million compared to $1,215m in the same period of last fiscal year.

The higher repatriation of profits could be a burden on foreign exchange reserves of the country but it also showed the higher profitability on foreign investment and improved performance of the relevant companies.

However, the foreign direct investment (FDI) in the county further declined by 28 per cent to $1.75bn during the 11MFY21.The outflow as profits on foreign portfolio investment was $114m in 11MFY21 against $137m during 11MFY20.

The highest outflow of $281m in 11MFY21 was noted from the financial business reflecting the higher profitability of the banking sector compared to $183.3m in 11MFY20.

Food sector also proved highly profitable as outflows from this sector were were $229m compared to just $58m in the same period last year. The communication sector repatriated $184.4m in 11MFY21 against $73m and tobacco & cigarettes profits outflow was $120m against $35m in 11MFY20.

The profits from oil and gas exploration dropped to $97m against an outflow of $215.7m during the same period of last fiscal year. The transport also noted a decline in the profits as it fell to $130m compared to $169m of last fiscal year.