KARACHI: The outflows of profit and dividend were more than doubled in the first half of the current fiscal year compared to the same period last year.

       The State Bank of Pakistan (SBP) reported on Friday that the profit outflows on foreign investment reached $567.7 million against $217.6m in the same period last year.

       The previous fiscal year witnessed restricted outflows and the government and the central bank came under severe criticism and the policy was termed as anti-investment for the foreign investors. In the first half of the current fiscal year, the SBP relatively eased the curbs as a result outflows of profits and dividends on foreign investments increased steeply.

       However, the government policy is still against the outflows and is reflected in the tight grip over the imports. By reducing the imports on a large scale, the government has succeeded in bringing down the trade and current account deficits, which simultaneously hit industrial activities due to a shortage of raw materials. The highest profit outflow was noted from the manufacturing sector as it reached $166m against just $27m in the same period of last year.

       Similarly, the outflow of profits from the wholesale sector rose to $153.8m against $4.5m in the same period last year.

       The profits outflow from financial business was $62.5m against $17.2m while the transport and storage noted an outflow of $78m in the first half of the current fiscal year. The profit outflow in the same period of last year was $7.8m.

       Published in Dawn, January 27th, 2024