- Analysts say surge comes after relaxation of capital controls that were implemented previously to curtail outflow of foreign exchange
KARACHI: Repatriation of profits and dividends by foreign investors on their investment in Pakistan sharply rose by 74.46 percent during the first two months of this fiscal year (FY24).
According to the State Bank of Pakistan (SBP), foreign investors repatriated profit and dividend amounting to $49.2 million in July-Aug of current fiscal year compared to $ 28.2 million in the same period of last fiscal year (FY23), depicting an increase of $ 21 million.
Analysts said the surge has been witnessed after the relaxation of capital controls that were implemented previously to curtail the outflow of foreign exchange from the country.
The profit repatriation on foreign direct investment surged to $43.9 million in July-August FY2024 from $26.6 million a year earlier. The outflows of profits and dividends on portfolio investment increased to $5.3 million from $1.6 million.
The petroleum refining sector repatriated abroad $27.4 million in July-August FY2024. This sector repatriated zero amounts in the same period of the last fiscal year.
The mining and quarrying sector repatriated abroad $13.9 million, compared with $7.9 million a year earlier. Financial businesses repatriated abroad $3.7 million, compared with $0.3 million a year earlier.
Month on Month basis, during August 2024 foreign investors repatriated $47.1 million in profits and dividends to their home countries.
Copyright Business Recorder, 2023