July-Sept: profit repatriation from Pakistan rises massively by 266% YoY
- Stands at $212.9mn during three-month period
Repatriation of profit and dividends by foreign investors registered significant growth and jumped over 266% during the first three months of this fiscal year.
According to the State Bank of Pakistan (SBP), repatriation of profit and dividend by foreign investors stood at $212.9 million in July-September of FY24, compared to a mere $58.1 million in the same period of the previous fiscal year (FY22), an increase of $154.8 million.
The SBP data further showed that repatriation of profit and dividend from Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in 1QFY24, stood at $194.9 million and $18 million, respectively, showing a YoY increase of 288% and 128%, respectively.
The highest outflow of profit and dividends amounting to $53.7 million was sent from the petroleum refining sector. This sector repatriated zero amounts in the same period of the previous fiscal year.
The financial business sector repatriated $37 million in 1QFY24, $21.8 million was from transportation sector, and $13.9 million from the mining and quarrying sector.
Analysts said that 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.
During the month of September, repatriation of profit and dividend by foreign investors clocked in at $163.7 million, an increase of over 447%, as compared to $29.9 million in September.
On a monthly basis, repatriation increased by nearly 248%, as compared to $47.1 million in August.
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