Outflow of profits jumps by six times in July-May

The profits and dividends on foreign investment have increased by almost six times during the first 11 months of the current fiscal year over the same period of the last fiscal. The profits and dividends were deliberately restricted by the State Bank (SBP) in FY23 to save its reserves at a time when the country had reached close to sovereign default at the end of June last year. Data issued by the State Bank on Thursday shows profits and dividends rose to $1.805 billion during July-May FY24 while it was just $313 million in the same period of the last fiscal year — almost six times higher. The State Bank eased the outflow of profits on foreign investments upon the IMF’s intervention and asked the central bank to release the profits held back by it.