July profit repatriation significantly rises to $139.13m YoY

KARACHI: The repatriation of profit and dividend by foreign investors has significantly increased to $139.13 million in July 2024 as compared to $2.16 million repatriated in the same month of last year.

According to the State Bank of Pakistan (SBP) data, the foreign companies repatriated $133.86 million profit against the foreign direct investment (FDI) in different businesses in this month as compared to $1.53 million in the same month last year.

In addition, repatriation of profit and dividend from portfolio investment increased to $5.27 million in July 2024 as compared to $0.62 million in the same month in 2023.

Analysts were of the view that removal of restriction on outflow of foreign exchange has largely contributed to a massive increase in repatriation of profit and dividend.

During the last fiscal year, the federal government imposed some restrictions on foreign exchange to maintain the reserves at a reasonable level that resulted in lower repatriation of profit and dividend by the foreign companies.

The highest repatriation was witnessed from power, tobacco, transport, financial business and chemical sectors.

Copyright Business Recorder, 2024