Foreign companies’ repatriation of profits and dividends rose to $273 million in October 2023, up by 1,970 percent year-on-year (YoY) from $13.2 million in the same period last year.
According to Arif Habib Limited, this is the highest level of profits/dividends repatriated since July 2020.
In July-October 2023-24 (4MFY24), this figure also saw a significant rise of 581 percent to reach $485.4 million, according to data released by the State Bank of Pakistan.
Repatriation of profits and dividends clocked in at USD 273mn (Highest repatriation after Jul20).
During Oct’23, the repatriation of profits and dividends in Pakistan reached at 39 months high, surging by 9.1x to USD 273mn. In 4MFY24, this figure also saw a significant rise of… pic.twitter.com/xY182QSINl
— Arif Habib Limited (@ArifHabibLtd) November 28, 2023
The Food sector had the highest payments on total foreign investments, totaling $67.1 million in October, compared to zero in the same period last year.
Profit repatriation from the Transport sector clocked in at $45.5 million during the period in review, compared to zero payments on foreign investments in SPLY.
Outflows from the Financial Business sector totaled $17.3 million in October, while the payments from the Power sector clocked in at Rs. 37.1 million during the period in review.
Meanwhile, the Chemicals sector returned $22.2 million in profits to their overseas outlets.
Notably, the repatriation of profits on foreign investments is improving as the government has started resolving the long-standing queue of profits and dividends of foreign companies. Also, due to higher earnings seen in multiple sectors in the past few months, overseas companies managed to repatriate higher returns.
