Karachi, June 27, 2024 – The State Bank of Pakistan (SBP) reported that foreign investors repatriated a record $918 million in profits and dividends during May 2024.
Exponential Growth in Repatriation
This marks an unprecedented 1,522 percent increase compared to April 2024, where $56.6 million was repatriated. The substantial rise of $861 million is attributed to the government’s removal of restrictions on the outflow of foreign exchange.
Historical Context
Analysts highlight that this is the first time in Pakistan’s history that such a significant amount was repatriated in a single month, clearing all pending payments.
Breakdown of Repatriation
- Foreign Direct Investment (FDI): $887.5 million
- Foreign Portfolio Investment (FPI): $30.5 million
The UK received the highest outflow of $258 million, followed by the Netherlands with $109.5 million.
Cumulative Repatriation for FY24
During the first eleven months of FY24, foreign investors repatriated $1.805 billion, a 476 percent year-on-year increase from $313 million in the same period of FY23.
- Return on FDI: $1.7 billion (up from $257.2 million in FY23)
- Return on FPI: $106 million (up from $56 million in FY23)
The repatriated amount for FDI returns equaled the $1.728 billion in foreign direct investment Pakistan attracted during this period. Analysts attribute the surge to the relaxation of capital controls implemented the previous year to reduce foreign exchange outflows.
