KARACHI: The remittance of foreign investment profits and dividends has increased almost 6 times during the first 11 months of the current financial year.
According to the data released by the Central Bank, during July 2023 to May 2024, the transfer of profits and dividends abroad on foreign investments has increased to one billion 805 million dollars, which is the volume of the last financial year. It was only $31.3 million during the same period, a nearly 6-fold increase.
After intervention by the IMF and demands from the Central Bank for release of profits, the State Bank had relaxed the remittance of profits on foreign investments abroad.
This is also evident from the fact that the transfer of profits last month alone stood at $91.8 million, a reflection of the pressure on the State Bank.
Prior to the IMF’s intervention, economists and analysts had heavily criticized the policy, saying it would discourage investors from bringing money into the country.
Several experts believe that the central bank has not yet released the full profits and dividends, which foreign investors have earned during the fiscal years 2023 and 2024.
