Foreign Companies Transfer More Profits Abroad than Invested in Pakistan

Karachi: Foreign companies investing in Pakistan have transferred more profits abroad than they invested in the country. According to the State Bank of Pakistan, during the fiscal year 2023-24, foreign companies transferred profits totaling $2.21 billion out of Pakistan, while their investments in the country amounted to $1.5 billion during the same period.
Comparatively, during the fiscal year 2022-23, foreign companies transferred profits 23 times higher than the previous year. In June 2024 alone, these companies transferred $41 million in profits out of Pakistan. Financial businesses led the pack, with foreign companies transferring a total of $64 million abroad.
Experts attribute this surge in profit transfers to a relaxed government policy on outward remittances, which has facilitated higher profit repatriation. This trend marks a significant shift in foreign profit transfers, reaching unprecedented levels over the past six years.