RECORDER REPORT

KARACHI: The repatriation of profit and dividend by foreign investors has significantly increased to $139.13 million in July 2024 as compared to $2.16 million repatriated in the same month of last year.

According to the State Bank of Pakistan (SBP) data, the foreign companies repatriated $133.86 million profit against the foreign direct investment (FDI) in different businesses in this month as compared to $1.53 million in the same month last year.

In addition, repatriation of profit and dividend from portfolio investment increased to $5.27 million in July 2024 as compared to $0.62 million in the same month in 2023.

Analysts were of the view that removal of restriction on outflow of foreign exchange has largely contributed to a massive increase in repatriation of profit and dividend.

During the last fiscal year, the federal government imposed some restrictions on foreign exchange to maintain the reserves at a reasonable level that resulted in lower repatriation of profit and dividend by the foreign companies.

The highest repatriation was witnessed from power, tobacco, transport, financial business and chemical sectors.