In a significant development for Pakistan's economy, foreign investors have repatriated $2.2 billion in profits during the fiscal year 2023-2024, thanks to the efforts of the Special Investment Facilitation Council (SIFC).
This marks a 569% increase in foreign exchange repatriation compared to the previous fiscal year.
According to the State Bank of Pakistan, the repatriation of $2.215 billion in profits and dividends during the fiscal year 2023-2024 represents a rise of $1.884 billion from the $331 million repatriated in the fiscal year 2022-2023.
The return of profit and dividend by foreign investors increased by 569% during FY 2024-2023. The majority of this capital was returned through foreign direct investment (FDI).
Experts attribute this significant increase to the easing of capital controls that had been implemented to prevent foreign exchange outflows. The removal of these restrictions has facilitated a more favourable environment for foreign investors, leading to a notable uptick in repatriated profits.
According to Arif Habib Limited, the fiscal year 2023-2024 has seen the highest profits repatriated from Pakistan since the fiscal year 2017-2018. This increase is partly due to the elimination of a backlog of repatriations by the authorities.
The SIFC has been instrumental in driving this positive trend, playing a crucial role in revitalizing Pakistan's economy. The council's efforts to create a conducive investment climate have encouraged foreign investors to repatriate their profits, thereby strengthening the country's economic position.
