Overseas investors repatriated profits of $159.2 million in July 2021 (the first month of the fiscal year 2022), data released by the State Bank of Pakistan (SBP) showed.
This is 55 percent less than the number of profits repatriated in the first month of FY21, i.e., July 2020. This decline comes after the annual increase of 20.5 percent was recorded in the total profit outflow in 2020-21.
Foreign investors also transferred nearly $1.6 billion out of Pakistan during the previous fiscal year.
Out of the total outflow of profits, 88.6 percent accounted for profits on foreign direct investment (FDI) as opposed to a meager contribution of foreign portfolio investment (FPI). Pakistan has allowed 100 percent of profit repatriation as an incentive to attract foreign investment.
FDI’s profit repatriation clocked in at $141.1 million, which is considerably higher than the net FDI of $89.9 million.
The repatriated profits from the telecom sector amounted to $62.5 million; from the food packaging sector, the profits sent back home by international investors were $26.8 million; and financial businesses’ profits of $23.3 million were sent abroad.