KARACHI: Repatriation of profits and dividends by multinational companies increased by 90 per cent to $1.317 billion in the seven months of the current fiscal year, according to data from the State Bank of Pakistan.
In January, $102.9 million was sent home by multinational corporations and foreign investors who participated in the local stock market, a 19 per cent decrease over the same period last year. However, profit outflows increased by 20 per cent on a month-on-month basis.
Analysts stated that the increase in repatriated earnings of foreign investors during the July-January period of the fiscal year 2025 highlights unrestricted dollar outflows, attributed to improvements in foreign exchange reserves and heightened investor confidence in the Pakistani economy, driven by progress in reforms mandated by the International Monetary Fund’s loan programme.
The SBP’s data showed that the largest outflow of profits and dividends occurred in the food sector from July to January of FY25, with $263 million, up from $85.1 million in the same period last year. The power sector ranked second with $182 million in repatriations, followed by the financial businesses with $164.6 million in outflows during the seven months of the current fiscal year.