Profit Repatriation Soars 250% in First 10 Months of FY24

Profit Repatriation Soars 250% in First 10 Months of FY24

Foreign companies have repatriated $887 million in profits and dividends in the first ten months of the financial year 2023-24, marking a 250% year-on-year (YoY) increase from $253.4 million in the same period last year.

However, in April 2024, the repatriated amount was relatively low at $56.6 million, according to data released by the State Bank of Pakistan.

The manufacturing sector led in repatriation payments on total foreign investments, reaching $226.9 million in 10MFY24. This represents a 646% increase compared to $30.4 million in the same period last year.

The wholesale and retail trade, including the repair of motor vehicles and motorcycles sector, saw repatriations amounting to $213.5 million during the review period, a significant rise from $4.8 million in the same period last year.

The financial and insurance activities sector reported outflows totaling $150.6 million over the ten months, with $16.3 million in April 2024 alone. The electricity, gas, steam, and air conditioning supply sector accounted for $122 million in repatriations during the ten months, and $7.5 million in April.

The mining and quarrying sector returned $50 million in profits to their overseas outlets over 10MFY24, with $16 million repatriated in April 2024.

The increase in profit repatriation is attributed to higher earnings in multiple sectors, enabling overseas companies to send back greater returns.

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