Dollar outflow surges 251pc in July-April

The repatriation of profits and dividends on foreign investments surged year-on-year by 251 per cent during the first 10 months of the current fiscal year, reflecting the State Bank of Pakistan’s relaxed policy towards dollar outflows. According to data released by the central bank on Monday, the country witnessed a profit outflow of $887 million during July-April FY24 compared to $253m in 10MFY23. The SBP has eased control over outward remittances. Sources in the financial sector said foreign investors were apprehensive about the situation and had been complaining about the policy. At the same time, the IMF also intervened, as it did in relaxing curbs on imports. The country has been the lowest receiver of foreign investment in the region, and the policy to stop the outflow of profits has shattered the confidence of foreign investors. Foreign investment during the first 10 months of the current fiscal year was limited to $1.45bn.