In September 2023, foreign companies repatriated a substantial $163.7 million in profits and dividends from Pakistan, marking a staggering 448% increase from the same period the previous year. This surge in profit repatriation represents the highest level seen in 17 months, according to Arif Habib Limited.
The trend continued into the first quarter of the fiscal year 2023-24 (July-September 2023), with profits and dividends repatriation reaching an impressive $213 million, as reported by the State Bank of Pakistan.
The financial business sector led the way in foreign investment payments, totaling $33.3 million in September, a significant increase from the $4.8 million reported in the same period in the prior year. The petroleum refining sector also demonstrated remarkable growth, with $26.3 million in profit repatriation compared to zero payments on foreign investments in the same period last year.
Additional sectors contributed to this rising trend in profit outflows, with the electricity, gas, steam, and air-conditioning sectors totaling $13.6 million in September. The manufacturing sector also played a role, with payments amounting to Rs. 35.3 million in the same period.
Meanwhile, electronic companies returned $6.4 million in profits to their overseas outlets, further underscoring the increasing international financial activity within Pakistan.
This surge in foreign profit repatriation is indicative of growing confidence in Pakistan’s economic environment, as foreign companies continue to enjoy healthy returns on their investments.