The repatriation of profits and dividends from foreign investments in Pakistan skyrocketed to $139 million in the first month of the current fiscal year, marking a 64.5-fold increase compared to just $2.2 million in July 2023, according to data released by the State Bank of Pakistan.
However, there was a notable 66.4% decrease in month-on-month outflows of profits and dividends in July this year. In the previous month, multinational companies and foreign investors in the local stock market had sent $415 million back to their home countries.
The profit repatriation on foreign direct investment surged to $133.9 million in July FY25, up from $1.5 million during the same period last year. Additionally, $5.3 million in profits and dividends from portfolio investments were paid out in July this year, compared to $0.6 million during the same period last year.
Interestingly, the outflow of repatriated profits and dividends exceeded the foreign direct investment (FDI) inflows totaling $136 million in July.
The power sector experienced the largest outflow of profits and dividends, reaching $29.5 million in July, a 103-fold increase from the previous year, according to SBP data. The transport sector followed with $21.2 million in repatriations, and the financial sector came in third with $16.1 million in outflows during the first month of the current fiscal year.
In July FY2025, Pakistan saw a reduction in its current account deficit due to an increase in remittances and an improvement in the balance of primary income. The deficit fell to $162 million, marking a 78% decrease from the previous year and a 48% decrease from the last month.
See the news article only showed the increase and comparing it with July 2023 – but check also that the repatriation of profit has been decreasing since May 2024 from $918 million to $139 million, because now Pakistan’s economy is giving them the decreased profit because the IMF / World Bank along with the existing Pakistan govt (head by so-called Finance Minister Aurangzeb, who is actually the banker not the economist) bringing Pakistan at the verge of collapse. This Finance Minister has only been hired to get loans and loans only and burdening Pakistan on the payment of Principal + interest, Pakistan is getting loan to pay interest on the loan, “Get Loan to Pay Loan” – it is the bleak picture of Pakistan economy which is being headed by the incapable Finance Minister.
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