www.thefinancialdaily.com  Profit repatriation down 14.5pc in 11MFY09 Aqeel Abdul Razzak KARACHI: Repatriation of profit and dividend by foreign companies and investors has declined sharply as it registered a fall of 14.5 per cent during the first eleven months of the current (2008-09) fiscal year, mainly due to slowdown in local economy. Data released by State Bank of Pakistan (SBP) show that repatriation of profit by foreign companies in Pakistan decreased by $123.7 million to $729.5 million in July-May period of FY09 as compared to $853.2 million during the corresponding period of last fiscal year.  As per details, profit repatriation on foreign direct investment (FDI) stood at $568.5 million while on foreign portfolio investment (FPI) it stood at $161 million during the period under review. Out of 36 sectors, only nine sectors showed increase in repatriation of profit and dividend, mainly due to contraction in earnings of foreign companies in the country. Power sector remained the major contributor to this outflow, as its companies sent $168.6 million as compared to $151.3 million, showing a surge of 11.6 per cent in overall outflow, mainly due to higher profit generated by the companies owing to depreciating Pakistani currency along with demand of power in the country. This sector has contributed 23.1 per cent to overall repatriation. It is followed by petroleum refining sector which sent $77.3 million in 11MFY09 compared to $55.2 million during the same period last year, showing a hike of 40.1 per cent mainly to higher profits earned by this sector due to inventory gains along with higher gross refinery margins (GRMs). Financial business is third largest sector as foreign investors sent abroad an amount of $75.6 million during the first eleven months of current fiscal year. However, the amount is less as compared with $140.4 million in same period of last fiscal year. Trade sector has also shown significant increase of 122.8 per cent to stand at $73.1 million 11MFY09 as against $32.8 million in 11MFY08. Oil and gas exploration companies transferred $67.8 million profit and dividend from July to May 2008-09 as against $64.6 million in the same period last year, depicting a surge of 5 per cent. On the other hand, repatriation of profit by telecommunication sector declined by 48.6 per cent to $49.7 per cent from $96.7 per cent during the period under review, as higher competition in telecom sector reduced the companies' profits. Foreign investors transferred profit and dividend worth $41.6 million from food sector, $29.8 million from chemical sector, $24.4 million from beverages, $23.1 million from tobacco and cigarettes, $22 million from pharmaceutical and OTC products, $15.3 million from transport equipment (automobiles) and $9.8 million from transport sector.