Karachi: In the first five months of the current fiscal year, foreign investors increased their repatriation of profits and dividends by a significant 112%. This surge reflects improved economic conditions and growing investor confidence in Pakistan.
According to the State Bank of Pakistan, foreign investors sent back $1.129 billion in profits and dividends from July to November 2024. This marks a sharp increase from $523 million during the same period last year. The increase of $597 million highlights the growing confidence in Pakistan’s economy.
A large portion of the repatriated funds came from Foreign Direct Investment (FDI) returns. Foreign investors sent back $1.074 billion in FDI returns during this period. This is an increase of 118% or $582 million compared to the previous year’s $492 million.
Growth in Foreign Portfolio Investment (FPI)
Foreign Portfolio Investment (FPI) also contributed to the rise in repatriated profits. The FPI returns totaled $54 million in the first five months, up from $41 million in the previous year.
Experts suggest that this increase in profit repatriation reflects the growing profitability of foreign investments in Pakistan. Stronger economic fundamentals and improved financial performance in key sectors are supporting these returns. The surge also demonstrates Pakistan’s potential as a profitable investment destination.
In November 2024, a total of $322 million was repatriated. Of this, $302 million came from FDI returns, and $20 million came from FPI profits. This shows continued confidence in the investment climate in Pakistan.
Food Sector Leads the Way
The food sector stood out in the first five months of the fiscal year. It repatriated $247 million in profits and dividends. This is nearly four times the amount sent back during the same period last year, which was $68.6 million. This significant increase reflects the strong performance of the food industry in Pakistan.
Other sectors also contributed to the rise in profit repatriation. The financial sector sent back $160 million, while the energy sector followed with $157 million. These sectors are seeing strong growth, making Pakistan an attractive destination for foreign capital.
The increase in repatriated profits shows that foreign investors are seeing substantial returns on their investments in Pakistan. The positive trend is expected to continue as the country’s economic situation stabilizes and more sectors perform well.
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