Multinational companies repatriated $1.719 billion in profits and dividends during the first nine months of the current fiscal year — a 108% increase, according to the latest figures from the State Bank of Pakistan (SBP).
This increase indicates that the central bank continues to permit capital outflows from foreign investors, reflecting ongoing improvements in the external account, The News reported on Sunday.
In March, $157.9 million was sent home by multinational corporations and foreign investors who participated in the local stock market.
Pakistan posted a $1.2 billion record high current account surplus in March due to surging remittances. However, the country experienced a $97 million current account deficit in the previous month.
For the first nine months of the fiscal year 2025, Pakistan recorded a current account surplus of $1.9 billion, in contrast to a deficit of $1.7 billion during the same period last year.
The SBP expects forex reserves to reach over $14 billion in June. Currently, the SBP’s reserves stand at $10.57 billion — enough to cover two months of imports.
Pakistan’s net foreign direct investment (FDI) increased 14% to $1.644 billion for the July-March period of FY25. However, the country attracted FDI inflow of $25.7 million in March, compared with $294.2 million a year earlier.
Data from SBP showed that profit repatriation from the FDI increased to $1.649 billion during the July-March FY25 period, up from $764.3 million last year.
During this same period, profits and dividends from foreign private investments amounted to $70.8 million, compared with $61.7 million the year before.
The power sector experienced the highest outflow of profits and dividends in July-March FY25, amounting to $327.9 million, an increase from $113.5 million last year.
The food sector ranked second, with repatriations of $291 million, followed by the financial sector, which had outflows of $214.2 million during the first nine months of the current fiscal year.
