Surge in Profit Repatriation to $567.7 Million in First Half of Fiscal Year 2024

The repatriation of profits and dividends by foreign investors witnessed an impressive surge, reaching $567.7 million in the first half of fiscal year 2024, marking a 2.61x YoY increase compared to the $217.6 million recorded in the corresponding period last year, according to the latest data released by the central bank.

Detailed analysis of the data revealed that foreign companies repatriated $521.4 million in profits linked to foreign direct investments (FDI) across various businesses, displaying a substantial 2.85x YoY growth in 1HFY24, compared to $182.8 million in the same period of the previous fiscal year.

In terms of portfolio investment, the outflow as payment reached $46.3 million, reflecting a notable 33.23% YoY increase in the first half of fiscal year 2024, compared to $34.8 million in 1HFY23.

In December 2023, the repatriation of profits and dividends by foreign firms totaled $35.4 million, indicating a 24.56% MoM decrease.

Sector-wise Breakdown:

An examination of the data based on sectors reveals that major sectors experiencing the highest repatriation include Petroleum Refining, Food, Transport, Financial Business, Power, and Transport Equipment (Automobiles).

Notably, the Petroleum Refining sector led the way, repatriating the highest profits of $103.1 million in the first half of fiscal year 2024.

In the Food sector, profit outflows amounted to $68.8 million, while the Transport sector witnessed a significant increase to $68.4 million in the same period.

Payments related to total foreign investment under the Financial Business and Power sectors stood at $61.5 million and $57.6 million, respectively, during the review period.

Country-wise Distribution:

Breaking down the data by country, the State Bank of Pakistan (SBP) disclosed that firms and individual investors in the UAE dispatched the largest single profit, amounting to $149.1 million during 6MFY24, a substantial increase from $11.8 million in the corresponding period of the previous fiscal year. In December alone, payments to the UAE stood at $26.9 million.

The United Kingdom followed closely, witnessing the second-highest profit repatriation at $71.9 million abroad during 1HFY24, compared to $14.7 million in 1HFY23.

China secured the third position, repatriating $38.9 million from Pakistan, marking an increase from the previous fiscal year when the country remitted $32.7 million as profit income from Pakistan during July-Dec FY23.

France trailed closely behind with a profit repatriation of $36.31 million during the review period. In December, the UAE maintained dominance with a repatriation worth $26.9 million.