Foreign profit repatriation rises 188 per cent in August

ISLAMABAD: Foreign investors significantly increased their repatriation of profits and dividends in August, with a sharp rise of 188.15 per cent, according to the latest data from the State Bank of Pakistan (SBP).

A total of $135.58 million was sent abroad in August 2024, compared to just $47.05 million in the same month last year.

Foreign companies repatriated $134.22 million from profits generated through foreign direct investments (FDI) in various businesses.

This marks a substantial increase of 216.86 per cent compared to the $42.36 million sent back during the same period last year. However, outflows linked to portfolio investments saw a decrease, dropping 37.02 per cent to $1.36 million, down from $2.16 million in August 2023.

In the first two months of the current fiscal year (2MFY25), the total repatriation of profits and dividends by foreign firms surged by 458.26 per cent to $274.7 million.

Breaking down the figures by country, the United Kingdom topped the list, sending $63.3 million abroad in August, a sharp rise from the $1 million repatriated in the same month last year. Kuwait followed, with $18.43 million repatriated, while Switzerland came third, sending back $12.47 million.

The United Arab Emirates also saw significant repatriation, with $12.39 million sent out during the period.

Sector-wise, the Financial Business sector saw the highest repatriation, sending $43.51 million abroad in August. The Food sector followed closely with $28.26 million, while Tobacco & Cigarettes saw $20.95 million in profit outflows.

The Transport and Chemical sectors also contributed, with outflows of $14.72 million and $5.81 million, respectively.

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