Karachi, November 26, 2024 – Foreign investors operating in Pakistan repatriated over $807 million under the head of profit and dividends during the first four months (July–October) of the fiscal year 2024-25, according to official data released on Tuesday.
The State Bank of Pakistan (SBP) revealed that the repatriation of profit and dividends by foreign investors surged by 66.26% in this period, compared to $485.50 million during the corresponding months of the previous fiscal year.
Financial market analysts have linked the substantial rise in profit repatriation to increased confidence among foreign investors, fostered by the SBP’s liberal policies.
In recent years, the country imposed restrictions on profit and dividend outflows by foreign investors to manage its foreign exchange crisis. However, once the crisis eased, the SBP lifted these restrictions, enabling foreign investors to transfer profits and dividends to their parent companies abroad.
Foreign investors showed a significant 69.37% increase in profit repatriation to $772.50 million on direct investments during July–October FY25, up from $456.20 million in the same period of FY24.
Similarly, profit and dividend repatriation by foreign investors through foreign portfolio investments in the capital markets rose by 19% to $34.70 million in the first four months of FY25, compared to $29.20 million in the corresponding months of the previous fiscal year.
Sector-wise, the food sector witnessed a significant outflow, with foreign investors repatriating $186.80 million during July–October FY25, a sharp rise from $68.40 million in the same period last year.
In the power sector, foreign investors withdrew $115.50 million during this period, more than double the $50.30 million repatriated in the corresponding months of FY24.
Meanwhile, the financial business sector saw profit and dividend outflows by foreign investors amounting to $94.40 million, compared to $54.40 million in the same timeframe last year.
This sharp increase in outflows underscores foreign investors’ renewed ability to repatriate earnings, reflecting their confidence in the country’s economic policies and the improved foreign exchange situation.
