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.
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.