Repatriation of profit surges 114pc

The outflow of profit and dividends on foreign investments surged 114 per cent during the first half of the current fiscal year. The profit repatriation was primarily restricted in FY24 to contain the country’s fast-depleting foreign exchange reserves. Foreign investors widely criticised the government policy, and the International Monetary Fund (IMF), among other harsh conditions, asked Pakistan to ease the curbs on imports and outward remittances by multinational companies if it wanted to secure a new 37-month $7bn Extended Fund Facility. Pakistan secured the first tranche of $1bn in September 2024 under the new bailout package. On Monday, the State Bank’s data showed that the outflows surged to $1.215bn during July-Dec FY25 from $568m in the same period last year. While the new financial year witnessed an inflow from the IMF, remittances increased by 33pc in 1HFY25.