During the fiscal year 2023-2024, foreign investors repatriated a substantial $2.215 billion in profits and dividends, according to a report from the State Bank of Pakistan (SBP) released on Monday.
This repatriation marked a dramatic increase of 569% compared to the $331 million reported in FY23, representing a surge of $1.884 billion. Experts attribute this rise to the relaxation of capital controls that had been put in place the previous year to limit foreign exchange outflows.
Arif Habib Limited (AHL) noted that FY24 saw the highest repatriation of profits and dividends since FY18, with authorities clearing the backlog. This represents the highest level of repatriation in six years.
Most of the repatriated funds were linked to Foreign Direct Investment (FDI), totaling $2,085.1 million, while Foreign Portfolio Investment (FPI) accounted for $130 million. The UK received the largest share, with $558.6 million repatriated, followed by the UAE with $273.6 million in FY24.
On a monthly basis, repatriation figures showed a decrease. In June 2024, the total amount repatriated was $414.5 million, down from $918.1 million in May 2024, reflecting a 55% drop of $503.6 million. However, this figure was significantly higher than the $17.9 million repatriated in June 2023. Of the June 2024 total, $390.5 million was from FDI and $24.1 million from FPI.
