Profit outflows surge 90pc in July-Jan

The profit outflows slightly decreased in January but were still higher by 90 per cent in the first seven months of FY25, according to State Bank of Pakistan (SBP) data released on Thursday. Despite the country’s challenges on the external front amid falling foreign exchange reserves, the central bank kept allowing the repatriation of profits on foreign investments. The outflow of profits and dividends surged to $1.317 billion during July-January FY25 from $694m a year ago. The profit outflow was even steeper in the first half of the current fiscal year as it posted an increase of 114pc over last year. The dollar outflows were restricted mainly in FY24 to contain the depleting foreign exchange reserves. Foreign investors widely criticised the policy, and the International Monetary Fund (IMF) urged the government to ensure multinational companies get their profits repatriated.