Pakistan offers high profitability margins, return on equity

Agriculture Forum Pakistan Chairman Muhammad Ibrahim Mughal said here on Tuesday that Pakistan offers high profitability margins and a return on equity at 20 percent unmatched by any country in the region. In a statement, Mughal claimed that according to facts during Financial Year 2011-12, foreign direct investment (FDI) inflows decreased to US $812.6 million from $1.63 billion last year.

Yet the repatriation of profits and dividend on FDI rose by 36 percent to $780 million in the financial year 2011-12 from $574 million in financial year 2010-11. He claimed these figures suggest that Pakistan is, therefore, not a bad destination for FDI, but it is all a matter of perception that has painted the picture of ‘high risk country.’ He said Pakistan offers high profitability margins and a return on equity at 20 percent unmatched by any country in the region. Banks enjoy spreads of 7 percent compared to 4 percent in the region. ‘Analysts, therefore, believe that the high risk is compensated by high returns,’ Mughal concluded.

Copyright Business Recorder, 2012

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