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Profit Repatriation-During the period from July to November in the current fiscal year (FY24), foreign investors withdrew $532 million in profits and dividends from their investments in Pakistan, marking a substantial 312 percent surge compared to the $129 million repatriated in the corresponding period of the previous fiscal year (FY23), as per The State Bank of Pakistan (SBP) report released on Wednesday.
The increase in repatriation is attributed to the relaxation of capital controls implemented last year to address the foreign exchange crisis. Pakistan’s foreign exchange reserves received a boost through a loan from the International Monetary Fund (IMF), contributing to this upward trend.
Breaking down the data, the profit repatriation from both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) witnessed significant increases of 377 percent and 58 percent, respectively. FDI repatriation accounted for $491 million, while FPI repatriation reached $41 million.
Notably, the Petroleum Refining sector led in profit repatriation with $78 million, followed by the Food sector at $68.6 million and the Transport sector at $68.4 million.
In the month of November alone, the profit repatriation amounted to $47 million, with $35.1 million from FDI and $11.7 million from FPI.
Analysts anticipate that this trend of repatriation is likely to persist as the economy continues to improve.
Read More: Dusk News Business