KARACHI. The outflow of profits and dividends on foreign investments more than doubled during the first eight months of the current fiscal year.

On Friday, the State Bank of Pakistan data showed that the repatriation of profits surged 103.94 per cent to $1.55 billion during July-February FY25 compared to $760 million in the same period last fiscal year.

The higher profit outflow signifies an ease of restrictions, but the country’s foreign exchange reserves have remained below a satisfactory level.

The foreign investors were critical of the SBP curbs on dollar outflows, and the IMF influenced Pakistan to change this policy after the Fund saved Pakistan from a default-like situation.

The data reveals that during the eight months, the repatriation of profits from the food sector was the highest, with $292 million, while the power sector remitted $233m in the same period. The finance (usually banks) repatriated $191m.

The SBP foreign exchange reserves stood at $11.14bn, insufficient to meet the growing imports and external debt repayments. Luckily, Pakistan has already received $5bn more than last year through remittances. However, the country needs $25bn yearly to repay the external debt, including $5bn interest. The government remains busy each year, borrowing more and rolling over external debts.

The government announced it would take the exports to $60bn under the “Uraan Pakistan” programme.

Published in Dawn, March 22nd, 2025