Pakistan sees $2.215 billion repatriation by foreign investors in FY24

ISLAMABAD: In the fiscal year 2023-2024, foreign investors repatriated $2.215 billion in profits and dividends, according to a report released by the State Bank of Pakistan (SBP) on Monday.

This figure represents a dramatic increase of 569 per cent compared to the $331 million repatriated in the previous fiscal year, marking a rise of $1.884 billion. The surge is attributed to the relaxation of capital controls that had been imposed in the prior year to mitigate foreign exchange outflows.

Arif Habib Limited (AHL) highlighted that the repatriation of profits and dividends in FY24 reached the highest level since FY18, as authorities cleared the backlog from earlier restrictions. This marks the largest repatriation figure in six years.

Of the total amount repatriated during FY24, $2.085 billion came from Foreign Direct Investment (FDI), while $130 million was from Foreign Portfolio Investment (FPI). The United Kingdom saw the highest outflow, receiving $558.6 million, followed by the United Arab Emirates with $273.6 million.

On a monthly basis, repatriation decreased significantly in June 2024, falling to $414.5 million from $918.1 million in May 2024, a decline of nearly 55 per cent. Despite this monthly drop, the amount repatriated in June 2024 was substantially higher compared to $17.9 million in June 2023.

In June 2024, $390.5 million of the repatriated funds were attributed to FDI, while $24.1 million were related to FPI.

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