KARACHI - Despite improvement in the real economic activities of the worlds advanced economies, the repatriation of profit and dividends, posted by the corporate sector declined to $200.5 million during the first four months of current financial year 2009-10, compared with $276.7 billion in the same period of last year. In absolute terms, growth in the interest payments of the corporate sector reduced by 27.5 per cent during the period under review. During July-October FY10, the FDI flows including inward and outward amounted to $621.8 million as against $1.329 billion in July-Oct FY09. The deceleration in repatriation of profits and dividends of the foreign and local companies owed to lower corporate profitability and considerable depreciation of the exchange rate local currency against the US dollar and other major currencies. SBP sector wise break-up of repatriated profits and dividends by the MNCs showed that most of the decline was driven by financial business, trade, power, automobiles (transport equipment), cement, fertilizers, pharmaceuticals, oil & gas explorations, perto chemicals, textiles, tobacco & cigarettes and beverages sectors. Most of the sectors were adversely affected by fall in economic growth, general demand and corporate profitability. However, the earnings and profitability of the financial business during the reviewed period was hit by the slowdown in economy and rise in non-performing loans of the banking sector. These statistics further revealed that the higher profit-making trend of the oil & marketing and petroleum refining companies is on the declining note on account of slowdown on inventory losses. The sectors that witnessed increase in repatriation of profit and dividends during July-Oct 2009 included food, transport, communications, chemicals, storage facilities and others. According to SBP, food sector registered $22.9 million repatriated profit, witnessing 11.7 million worth FDI flows, chemical companies sent back $18 million to abroad and invested $48.0 million in chemical sector, while the companies provide storage facilities, communications and transport services earned $30, $42.7 and 6.9 millions, whereas, FDI flows reached $41.3 million and $31.4 million. The fall in investment inflows mainly due to worsening financial crisis, which weakened capacity of the international investors on account of falling corporate earnings, heightened risk and reduced access to financial resources deteriorating law and order situation and wakening growth prospects. The global financial crisis reduced overall outward foreign direct investment from the US and the UK while fall on oil process significantly slowed down foreign investment inflows during FY09. Meanwhile, as per SBP fresh balance of payments data, income deficit stood at $1.248 billion during July-Nov FY10 as compared to $2.464 billion of last fiscal year. Increase on investment income net outflow slashed to $423 million in Jul-Nov 2009 compared to $954 million previous year. The repatriation of profit and dividends recorded at $261million as against $954 million during the corresponding period of FY09.