Pakistan sees 115% surge in repatriation of profits and dividends in April

The repatriation of profits and dividends in Pakistan rose sharply by 115% in April compared to the same month last year, reaching $121.5 million, according to the State Bank of Pakistan.

The financial business sector led with $74 million in outflows, followed by the power sector at $11.9 million and pharmaceuticals at $9.7 million.

Over the first 10 months of the fiscal year, profit repatriation climbed 107% to $1.83 billion. The power sector recorded the highest outflows at $339.8 million, followed by food at $291.1 million and financial business at $288.2 million.

Analysts attribute the increase to improving external accounts, allowing foreign businesses to transfer earnings more freely since the start of the fiscal year. The rise also signals growing confidence in Pakistan’s economic recovery, they said.

A central bank report cited favorable global trends, along with measures to boost IT exports and remittances through official channels, for strengthening the country’s balance of payments. Steady export growth and strong remittances have helped offset higher imports and finance increased profit repatriation.