Foreign investors repatriate over $400 million in October alone: SBP report

ISLAMABAD: Foreign investors have significantly ramped up repatriation of profits and dividends during the first four months of the ongoing financial year, marking 66.28 per cent increase compared to the same period last year (SPLY).

Looking at the latest data released by the State Bank of Pakistan (SBP), a total of $807.22 million was sent abroad by foreign companies which is up from $485.45 million in the corresponding period of the previous fiscal year.

Out of this, $772.55 million was repatriated as profits on foreign direct investments (FDI) in various sectors reflecting 69.33 per cent year-on-year surge compared to $456.25 million recorded last year. This highlights the strong returns foreign investors are seeing on their investments in Pakistan.

In addition to FDI-related outflows, payments against portfolio investments amounted to $34.68 million during the period, an increase of 18.73 per cent from $29.21 million last year.

The report also highlighted big rise in repatriations in October alone with foreign companies sending $413.82 million in profits and dividends overseas, underscoring ongoing trend of increased profit outflows.

Breaking down the data by sector, the food industry emerged as top contributor with $186.77 million repatriated in the first four months of the current fiscal year. The power sector followed with $115.52 million while the financial business sector saw $94.43 million sent abroad.

Other key industries includes tobacco and cigarettes sector with outflows of $70.6 million and oil and gas exploration which repatriated $68.48 million during the period.

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