Profit repatriation by foreign companies increased by 51.5 percent in 2007, reducing the net inflow of foreign direct investment (FDI), said the Centre for Policy Dialogue (CPD).
The observation was published in a paper on “State of the Bangladesh Economy in Fiscal Year 2008 and Outlook for Fiscal Year 2009” which was released by the leading think tank Wednesday.
The total inflow of FDI in 2006 and 2007 were $823.4 million and $950.4 million respectively. However, excluding the profit repatriation, the actual investment stood at $ 358 million and $ 245 million in the two years.
The paper also found that oil, gas and power companies were on the top in repatriating their profits. In 2007 these companies repatriated a total of $507 million, which was 71.91 per cent of the total profit repatriation from the country.
To cope with the situation, the CPD suggested that the government should encourage the large-scale foreign companies to reinvest their profit and offload a part of their shares in the capital market. These measures will make the local shareholders to get a part of the profits made by the foreign companies. |
Source : |
|
| |
|
