By our correspondent
KARACHI: In September, foreign investors repatriated $11.87 million in profits from their investments in Pakistan, marking a significant decline of 12.50 percent compared to the previous month, August. According to data from the State Bank of Pakistan, this decrease reflects growing concerns among investors about the economic climate in the country.
Of the total repatriated amount, $2.86 million originated from foreign investment in the financial services sector, underscoring the ongoing interest in this crucial industry despite the overall downturn. Looking at broader trends, the central bank reported that during the first quarter of the current financial year, foreign investors sent back a total of $39.34 million in profits. This figure highlights a notable rebound, with profit repatriation witnessing an impressive 84.6 percent increase compared to the same period last year.
This year-on-year growth suggests that while September’s figures are disappointing, the overall trajectory for foreign investment remains positive. The fluctuation in profit repatriation figures indicates the complex dynamics at play within Pakistan’s investment landscape. While the increase in the first quarter suggests strong foreign interest, the recent decline raises questions about potential risks that could affect future inflows.
Investors are closely monitoring the evolving economic conditions, regulatory changes, and security issues, all of which play a critical role in shaping their perceptions of Pakistan as a viable investment destination. The challenge for the Pakistani government lies in addressing these concerns while fostering an environment that encourages foreign investment, ensuring that the positive momentum seen earlier in the year can be sustained moving forward.
