Foreign Investors Withdrew $891 Million in First 6 Months of FY22

Foreign investors withdrew $891.2 million from Pakistan during the first six months of the ongoing fiscal year, which is a slight drop from last year’s outflows of $892.3 million.

According to the data released by the State Bank of Pakistan (SBP), the repatriation of profits and dividends during the period in review differed from the preceding year.

The profit outflow to the United Kingdom fell by 46 percent to $170 million as compared to $318 million in the same period last year. The second notable difference was the zero outflows to Malta in the first half of FY21 compared to $91.7 million in the first half of FY20 which allowed the government to retain the same amount of profit outflow as in 6MFY21.

The profit outflow to the United States decreased slightly to $146.7 million from $152 million in 6MFY21.

The other notable profit outflows were $90.7 million to Switzerland, $54.7 million to the United Arab Emirates, $70.5 million to the Netherlands, and $62.6 million to China. Also, profit repatriation to China has increased from $36 million in the first half of FY21.

On the other hand, the portfolio investment outflows were considerable, showing that foreign investment had a significantly better return from the financial markets. The outflows in the first half were $97.2 million against $52.2 million in the same period last year.

Similarly, the repatriation of profits and dividends diminished by nearly 17 percent to $477.7 million as compared to $576.8 million in the same period last year. However, the rate of outflows soared in the second half to reach $891.2 million in 6MFY22, which nearly matched that of 6MFY21.

On the flip side, the financial sector had the biggest profit outflows at $163.3 million, compared to $133.5 million at the same time last year.

Other miscellaneous instances suggest that the outflows from the communication sector declined from last year’s $119 million to $90 million. Moreover, the power sector had profit outflows worth $95.1 million as compared to $26 million from last year.

The outflows from oil and gas were recorded at $55.3 million in the first six months of the ongoing fiscal year in contrast with $73.8 million last year.

The food sector had the second greatest outflow of $106.3 million in the first half of FY22 as opposed to $172.9 million in the previous year.



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