Daily Times

An extraordinary increase has been noticed in the return of the profit of foreign investors in Pakistan, reported on Thursday.

According to the State Bank of Pakistan (SBP), only during first eight months of the ongoing financial year (FY), the profit return of these investors increased by 237 per cent to reach $759 million, while during the same period last FY, it was recorded at $225 million.

The bank says that during the period under review, the profit return of investors in the petroleum refining sector stood at $126 million against $200 million recorded last FY. While in the power sector, it stood at $109 million against over $30 million recorded last year.

An increase by 51 per cent has also been noticed in the profit return on the portfolio investment, the bank says, adding during the same period last financial year it stood at $307 million.

During the first eight months of the ongoing FY, profit return on the portfolio investment was recorded at $506 million.

Economic experts, on the other hand, have attributed an extraordinary increase in the profit return to the relaxation of rules by the SBP.

They have said that on account of an uncertain situation in the currency market during the last few years, there were restrictions on the return of foreign exchange. They have further said that the value of Pak Rupee has strengthened due to the crackdown on currency smugglers.