The latest statistics from the State Bank of Pakistan (SBP) shows that foreign corporations operating in Pakistan have shifted more profit abroad than they have invested in the nation.
Foreign corporations repatriated $2.21 billion in profits in the current fiscal year 2023–24, well exceeding their $1.5 billion in investments. With profits transferred overseas 23 times higher than in the prior fiscal year 2022–2023—this trend represents a significant increase.
According to the SBP report, foreign corporations repatriated $410 million in profits in June 2024 alone. The financial business sector, which sent the most money of any sector—$640 million—led this exodus.
Experts credit the government’s recent easing of the dollar repatriation policy, which has made it easier, for this significant profit repatriation.
The State Bank’s results highlight the important financial factors at work and cast doubt on how foreign investments and profit repatriations are distributed within Pakistan’s economy.
In the meantime, the interest rate would drop from 20.5% to 19.5% due to a 1% reduction announced by the State Bank of Pakistan (SBP).
