Repatriation of profit surges to $567.7m in 1HFY24

January 27, 2024 (MLN): Foreign investors ' repatriation of profit and dividends soared by 2.61x YoY in 1HFY24 to $567.7 million compared to $217.6m 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 $521.4m worth of profit against the foreign direct investments (FDI) in various businesses compared to $182.8m in SPLY, marking an increase of around 2.85X YoY in 1HFY24.

The outflow as payment against portfolio investment stood at $46.3m, compared with $34.8m in 1HFY23, witnessing a growth of 33.23% YoY in 1HFY24.

Meanwhile, in December 2023 alone, repatriation of profits and dividends by foreign firms stood at $35.4m, down by 24.56% MoM.

Sector-wise:

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

Among these, the Petroleum Refining sector repatriated the highest profits of $103.1m in 1HFY24 to overseas.

The data further revealed that Profit outflows from the Food clocked in at $68.8m.

Profits outflow from the Transport sector increased significantly to $68.4m in 1HFY24.

The payments made on total foreign investment under the financial business and power sector stood at $61.5m and $57.6m 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 UAE dispatched the single largest profit of $149.1m during 6MFY24 compared to just $11.8m, in the same period prior fiscal year.

To note, in the month of December alone, payments to UAE stood at $26.9m.

The United Kingdom witnessed the repatriation of the second-highest profits as the country repatriated $71.9m abroad during 1HFY24, compared with $14.7m in 1HFY23.

Third in line is China which repatriated $38.9m from Pakistan, up as compared to the number during July-Dec FY23, when the country remitted $32.7 as profit income from Pakistan.

Next followed by France with a profit repatriation of $36.31m during the review period.

In the month of December, the UAE held dominance with a repatriation worth $26.9m.

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