Foreign investors repatriate $2.2bn from Pakistan in FY24

July 29, 2024 (MLN): Foreign investors ' repatriation of profit and dividends rose 569.24% YoY in FY24 to $2.22 billion compared to $331m worth of repatriation in the same period last year, the latest data issued by the central bank revealed.

The data further revealed that during the period, foreign companies repatriated $2.09bn worth of profit against the foreign direct investments (FDI) in various businesses compared to $267.5m in SPLY, marking an increase of around 679.48% YoY in FY24.

The outflow as payment against portfolio investment stood at $130m, compared with $63.5m in FY24, witnessing a growth of 104.72% YoY from FY23.

Meanwhile, in June 2024 alone, foreign firms' repatriation of profits and dividends stood at $414.5m.

Sector-wise:

Sectorial representation of the data shows that the major sectors that witnessed the highest repatriation include the Financial Business, Power, Communications, Transport and Food sectors.

Among these, the Financial Business sector repatriated the highest profits of $638.6m in FY24 to overseas.

The data further revealed that Profit outflows from the Power sector clocked in at $245.8m.

Profits outflow from the Communications sector increased significantly to $205.4m in FY24.

The payments made on total foreign investment under the Transport and Food sector stood at $173.9m and $154m respectively during the review period.

Country-wise:

A country-wise break up of data on repatriation of profit released by SBP revealed that firms and individual investors in the United Kingdom dispatched the single largest profit of $558.57m during FY24, compared to $20.14m repatriated in the same period prior fiscal year.

To note, in the month of June alone, payments to United Kingdom stood at $102.9m.

The U.A.E witnessed the repatriation of the second-highest profits as the country repatriated $273.6m abroad during FY24, compared with $14.78m in FY23.

Third in line was Netherlands which repatriated $240.64m from Pakistan, up as compared to the number during SPLY, when the country remitted $1.2m as profit income from Pakistan.

Next in line was China with a profit repatriation of $192.84m during the review period.

Copyright Mettis Link News