Repatriation of profit and dividends by foreign investors clocked in at $272.5 million during the month of October 2023, an exponential growth of over 1964% compared to a meagre $13.2 million repatriated in October last year, showed latest data released by the State Bank of Pakistan (SBP).
“During October 23, the repatriation of profits and dividends in Pakistan reached a 39-month high, surging by 20.7x to $273 million,” said Arif Habib Limited (AHL) in a note.
“The amount is highest since July 2020, when the repatriation of profit by foreign investors was recorded at $355 million,” Tahir Abbas, Head of Research at AHL, told Business Recorder.
According to the State Bank of Pakistan (SBP), repatriation of profit and dividend from Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in October 2023, stood at $261.4 million and $11.2 million, showing a YoY increase of 3,049% and 128%, respectively.
During the month, the highest outflow of profit and dividends amounting to $57.1 million was sent from the food sector. This sector repatriated zero amounts in the same period of the previous year.
The transport sector repatriated $45.5 million in Oct’23, $37.1 million was from power sector, and $22.2 million from the chemicals sector.
July-Sept: profit repatriation from Pakistan rises massively by 266% YoY
Analysts said 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.
“The rising trend in repatriation amount is expected to continue and is a positive indicator which will improve the investor confidence,” said Tahir.
On a monthly basis, repatriation increased by over 66%, as compared to $163.7 million in September.
In 4MFY24, this figure also saw a significant rise of 581% year-on-year to reach $485 million, as compared to $71.3 million registered in the same period last fiscal year.
During the four-month period, the food sector saw the highest outflow of profit and dividends clocking in at $68.4 million.
The transport sector repatriated $67.2 million in 4MFY24, $55.5 million was repatriated from the petroleum refining sector, and $54.4 million from the financial business sector.
Source: brecorder.com
