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Telecom Sector Tops in Profit Repatriation in FY 2018

Multinationals in the telecom Sector continue to benefit from their billions of investments in mobile broadband services in the country. Telco's have witnessed an improvement in profit aspiration to their head office and reached $ 327 million in the 2017-18 fiscal year – the highest of all sectors.

According to the State Bank of Pakistan (SBP), the profit tracking of the Telecom Sector has increased by 83 percent in the outgoing financial year (FY18) compared to the profit of $ 177.8 million returned by the telecom sector to various countries. businesses.

On the other hand, the telecom sector made a foreign direct investment of $ 72.4 million during FY18 compared to an outflow of 90 million FDs registered in FY17.

Hence, not only did the telcos registered handsome dividends for their investors, but they continued to deposit money into the Pakistani market for the expansion of their network and services

The financial sector is in second place in terms of repatriated profit to foreign sponsors and investors. It stood at $ 314 million in FY18, according to the latest figures updated by SBP.

Because the parent companies of large telcos are managing their own microfinance banks and branch-free banking services, their share in the repatriated profits must be substantial in the previous financial year.

All three microfinance banks including Telenor Microfinance Bank, Mobilink Microfinance Bank and U-microfinance reported impressive gains. Pakistan has proven to be a lucrative market for telecom giants in both the banking and telecom sector.

Oil and gas exploration and production sector came in third, as witnessed a handsome profit ratio of $ 259 million in FY18. It is followed by the energy sector with $ 240 million in dividends and the food sector with $ 215 million in dividends returned to the home countries.

Winst aspiration grows 15.5% in FY18

Pakistan is an attractive country for multinationals and foreign investors and offers lucrative profits for these companies that not only earn money, but also send a good part of their income to the respective countries.

The profit ratio of multinationals and foreign investors increased by 15.5 percent in FY18 compared to the previous financial year.

According to the SBP statistics, the gain tracking by foreign countries in various sectors increased to $ 2.32 billion in FY18 compared to $ 2 billion reported in FY17. The profit tracking by various sectors and companies is lower than the foreign direct investment received by the companies in FY18, and came to $ 2.76 billion.

The increase in the pace of profit repatriation is due to the stability of the business climate on the domestic market, despite some major challenges for the economy. Improving the security situation and local consumption have stimulated the growth of economic activities. As a result, the revenue streams of multinational and local companies have also established themselves on the growth path.

Higher chances of profit-making and repatriation will not only increase the investments of existing foreign companies, but will also attract new players in the local market in the coming years, especially in the context of the China Pakistan Economic Corridor (CPEC).

The post Telecom Sector Tops in Profit Repatriation in FY 2018 appeared first on News Doses.



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