Profit outflows plunge 80pc

The outflow of profits and dividends on foreign investments fell sharply year-on-year by over 80 per cent in the outgoing FY23 reflecting poor performance of the economy. The latest data issued by the State Bank of Pakistan (SBP) on Wednesday reveals that multinational companies repatriated just $331 million in 2022-23 against $1.680 billion in the preceding year. The plunge in dollar outflows was due to poor economic conditions and the government’s policy to hold back the profits meant for payments to foreign investors during the outgoing fiscal year. Restricting outflows to a minimum in the wake of poor foreign exchange reserves amid the fear of def­ault was severely criticised by independent economists and analysts. However, the government faced an extremely difficult situation left with no option, particularly given the IMF’s reluctance to release the $1.2bn tranche long overdue under the 9th review of the $7bn programme, which expired on June 30.