In the first half of the financial year 2023-24, the repatriation of profits and dividends by foreign companies surged to $750 million, marking an impressive 245 percent year-on-year increase from the $218 million recorded in the corresponding period the previous year.
December 2023 alone witnessed a remarkable 146 percent YoY spike, reaching $218 million, according to data disclosed by the State Bank of Pakistan.
Within the spectrum of various sectors, the Petroleum Refining industry emerged as the leader in total foreign investments, disbursing a substantial $103.1 million in 1HFY24—an astronomical 500-fold rise compared to the meager $0.2 million reported in the same period a year earlier. The Food sector also demonstrated a noteworthy uptick in profit repatriation, registering $68.8 million during the review period, a stark contrast to the $0.7 million in foreign investments during the corresponding period in the previous fiscal year.
Further dissections reveal that the Financial Business sector experienced outflows totaling $61.5 million over the six months, with an additional $17.3 million in December 2023. Concurrently, the Power sector contributed to the trend, disbursing Rs. 57.6 million over the half-year and $31.8 million in December.
The Chemicals sector contributed $29.6 million in profits during 1HFY24 and $15.2 million in December 2023 to its overseas entities. The gradual resolution of the prolonged backlog of profits and dividends for foreign companies has significantly bolstered the repatriation data, with increased earnings across multiple sectors enabling higher returns for overseas entities.
