KARACHI: Repatriation of profit and dividends by foreign investors posted a record growth of 161 percent during the first half of this fiscal year (FY24).
The State Bank of Pakistan (SBP) on Friday reported that foreign investors repatriated an amount of $ 567.7 million during July-Dec of FY24 on account of profit and divided on their investments in the country compared to $ 217.6 million in the same period of last fiscal year (FY23), depicting an increase of $350 million.
Analysts said that previously some restrictions were imposed on the outflow of foreign exchange to support the foreign exchange reserves of the country. These restrictions were eased in the second quarter of this fiscal year, of which a massive surge has witnessed in the repatriation of profit and dividends by the multinational companies operating in Pakistan.
The detailed analysis of data revealed that repatriation of profit and dividends from Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) rose by 185 percent and 33 percent, respectively.
Repartition of profit and dividend as return from FDI was $ 521.4 million during the first half of this fiscal year compared to $ 183 million in the same period of last fiscal year, showing an increase of $ 338.6 million.
Return on FPI increased by $11 million to $46.3 million during July-Dec of FY24 up from $ 34.8 million in corresponding period of last fiscal year.
Highest outflow of profit and dividends amounting to $ 103 million was made from the Petroleum Refining sector during the first half of FY24. Food sector stood ranked second with $68.8 million and transport third with an outflow of $ 68.4 million. Financial sector also repatriated $ 61 million outflows during July-Dec of this fiscal year.
Month on Month basis, the repatriation of profits and dividends by the foreign investors was $ 35.4 million in December 2023. This included $ 30 million as return on FDI and an amount of $5.5 million as return on FPI.
Copyright Business Recorder, 2024