Overseas investors repatriate $1.8bn profit in 11MFY24

June 27, 2024 (MLN): Foreign investors ' repatriation of profit and dividends rose 476.55% YoY in 11MFY24 to $1.81 billion compared to $313.09m 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 $1.7bn worth of profit against the foreign direct investments (FDI) in various businesses compared to $257.2m in SPLY, marking an increase of around 560.65% YoY in 11MFY24.

The outflow as payment against portfolio investment stood at $105.96m, compared with $55.89m in 11MFY24, witnessing a growth of 89.58% YoY in 11MFY23.

Meanwhile, in May 2024 alone, repatriation of profits and dividends by foreign firms stood at $918.06m, marking the highest-ever monthly outflow.

This massive outflow this month is attributed to the State Bank of Pakistan (SBP) permitting foreign companies to repatriate profits and dividends.

Sector-wise:

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

Among these, the Financial Business sector repatriated the highest profits of $465.76m in 11MFY24 to overseas.

The data further revealed that Profit outflows from the Power sector clocked in at $237.16m.

Profits outflow from the Food sector increased significantly to $144.53m in 11MFY24.

The payments made on total foreign investment under the Petroleum Refining and Transport sector stood at $136.28m and $127.34m 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 $454.68m during 11MFY24, compared to $18.33m repatriated in the same period prior fiscal year.

The U.A.E witnessed the repatriation of the second-highest profits as the country repatriated $244.24m abroad during 11MFY24, compared with $13.97m in 11MFY23.

Third in line was China which repatriated $176.92m from Pakistan, up as compared to the number during SPLY, when the country remitted $80.47m as profit income from Pakistan.

Next in line was Netherlands with profit repatriation of $138.58m during the review period.

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