Dollar outflow surges seven times to record $2.2bn in FY24

The country witnessed the highest-ever outflow of profit and dividends by foreign investors in FY24 since FY18 as the State Bank of Pakistan (SBP) had to clear the backlog under pressure from the International Monetary Fund, China and others. Profits and dividends outflows recorded an almost seven times increase to $2.215 billion in FY24 from just $331 million in the preceding fiscal year. This clearly reflects Pakistan’s policy of not allowing dollar outflows. In FY23, the country had a serious problem with foreign exchange reserves and was about to default at the end of FY23. The IMF rescued it through a $3bn Standby Arrangement. However, banking sources said the SBP gradually eased the outflows, finally clearing about $2.2bn in FY24. They said profits are still stuck up. About $1.8bn of Chinese investors’ profits were held back in the outgoing fiscal year.