Growth in Repatriation of Profits Reaches $532.2 Million in First 5 Months of FY24

In a significant economic development, the repatriation of profits and dividends by foreign investors has surged, reaching an impressive $532.2 million in the first five months of Fiscal Year 2024 (5MFY24). This marks a substantial fourfold increase compared to the same period last year, as indicated by the latest data released by the central bank.

Breaking down the numbers, foreign companies repatriated $491.3 million worth of profits against foreign direct investments (FDI) in various businesses during this period. This demonstrates a remarkable 4.8-fold YoY increase compared to $102.9 million in the corresponding period of the previous fiscal year.

The outflow related to portfolio investments accounted for $40.9 million, witnessing a 56% YoY growth in 5MFY24, compared to $26.2 million in the same period a year earlier.

However, it's noteworthy that in November 2023 alone, the repatriation of profits and dividends by foreign firms experienced a significant dip, standing at $46.8 million, marking an 82.8% Month-over-Month decrease.

Sector-wise Analysis:

Delving into specific sectors, the data reveals that major industries contributing to higher profit repatriation include Petroleum Refining, Food, Transport, Financial Business, Power, and Transport Equipment (Automobiles).

In particular, the Petroleum Refining sector emerged as the frontrunner, repatriating the highest profits worth $78.2 million in the first five months of FY24.

Additional Insights:

Beyond this, the data sheds light on profit outflows from the Food sector, totaling $68.6 million in 5MFY24.

The Transport sector witnessed a substantial net profit of $68.4 million during July-November FY24.

The Financial Business sector recorded profit outflows of $58.1 million in the same period.

This surge in repatriation of profits signals a positive trend in foreign investor confidence and economic activity in Pakistan.