In the fiscal year 2023-24, foreign firms operating in Pakistan have achieved a record high in repatriating profits and dividends, totaling $2.215 billion. This figure represents a remarkable increase of 6.7 times compared to the $331 million repatriated in the previous fiscal year.
Arif Habib Limited (AHL) attributes this surge to the resolution of a significant backlog in profit repatriations, marking the highest level of outbound profit and dividend transfers since the fiscal year 2018. This notable increase underscores the most substantial repatriation peak observed in the past six years.
For June 2024, the repatriation of profits and dividends saw an extraordinary increase, climbing 23.1 times year-on-year to reach $414.5 million. This sharp rise highlights a critical turning point in the financial landscape for foreign investments in Pakistan.
Among the various sectors, the Financial Business sector recorded the highest outflow, with total foreign investment payments reaching $638.6 million for FY24. This figure is a dramatic 17.6 times higher than the $36.2 million recorded in the previous year, indicating a significant growth in foreign financial investments.
The Power sector also experienced a notable rise, with profit repatriation amounting to $245.8 million during the fiscal year, compared to $44 million in the same period the previous year. This increase reflects a robust performance in the energy sector and greater confidence from foreign investors.
In contrast, the Petroleum Refining sector reported total outflows of $130.9 million over the fiscal year, with a negligible amount of $0.1 million in June 2024. This indicates a relative stabilization in repatriation activities within this sector.
The Communications sector saw payments totaling $205.4 million for FY24, with $86.4 million of this amount occurring in June alone. This represents a steady and significant outflow of funds, reflecting continued investment in communications infrastructure and services.
Moreover, the Chemicals sector repatriated $76.2 million in profits over the fiscal year, with $13.4 million transferred in June. This consistent repatriation highlights ongoing investment and profitability in the chemicals industry.
This comprehensive data illustrates a dynamic shift in foreign investment patterns in Pakistan, with substantial increases in repatriated profits across key sectors, marking a significant milestone in the country’s economic interactions with the global market.
