Islamabad, Aug 28: The most recent data released by the central bank showed that the amount of profit and dividends repatriated by foreign investors increased dramatically to $139.13 million in July from $2.16 million during the same time the previous year.
According to the data, foreign corporations repatriated $133.86 million during the period against foreign direct investments (FDI) in various industries, which represents an increase of around 8633.5% YoY in July compared to $1.53 million in SPLY. The amount paid out as repayment for the portfolio investment was $5.27 million as of July 2023, up from $0.62 million the previous month, a 745.88% increase.
Sector-wise: A sectional analysis of the data reveals that the power, tobacco and cigarette, transportation, financial business, and chemicals industries are the main ones that saw the greatest rates of repatriation. Of these, the Power industry sent $29.5 million in profits home to foreign investors in July. The information also showed that the tobacco and cigarette industry saw profit outflows of $22.13 million.
The transportation sector’s profit outflow climbed dramatically to $21.25 million in FY24. During the review period, payments were made on the entire amount of foreign investment under the Financial Business and Chemicals sectors, which was $16.09 million and $13.49 million, respectively. The State Bank of Pakistan (SBP) allowed foreign corporations to repatriate profits and dividends, which is why there was such a large outflow.
Country-by-country: According to a breakdown of SBP’s data on profit repatriation, businesses and private investors in France made the biggest profit of $30.6 million in July.Returned profits for the United Kingdom were the second largest in the world in FY24, coming home with $29.94 million from overseas, up from $0.15 million in FY23.
The United States came in third place with $22.08 million in repatriations from Pakistan, which is more than the $0.53 million in profit that the country remitted from Pakistan during SPLY,with a profit repatriation of $20.74 million during the study period, the United Arab Emirates came next.
