Profit repatriation soars as ‘SBP eases control’

The repatriation of profits and dividends in July this year surged compared to the same month last year, reflecting a major policy shift by the State Bank of Pakistan (SBP), which had maintained stringent control over outflows during the previous fiscal year. According to the latest data released by the SBP on Wednesday, profit and dividend outflows reached $139.1 million this July, a sharp rise from just $2.2m in the same month last year. This stark contrast reflects the change in policy regarding profit outflows from the country. Throughout FY24, the State Bank tightly restricted dollar outflows, especially during the first half of the fiscal year. However, following the $3 billion Standby Facility agreement with the International Monetary Fund (IMF), the policy was relaxed, allowing profits to flow out of the country. By the end of FY24, total profit outflows amounted to $2.12bn, much higher than the $331m outflows in FY23.