KARACHI: According to data released on Wednesday by the State Bank of Pakistan, the United Kingdom—not China—received the most amount of earnings and dividends on foreign investments in FY24.
China’s earnings from independent power producers (IPPs) have been in the news, and the skyrocketing capacity payments to all IPPs have been met with strong opposition from Pakistan’s various social groups.
According to the SBP figures, the profit outflow for FY24 was $193 million to China and $558.6 million to the UK. The outflow to China was $83 million and to the UK was merely $20 million in the previous fiscal year.
China ranked fourth, with over 25% of all profits and dividends being repatriated to the UK in FY24. In FY23, the outflow of earnings from overseas investments was limited to $331 million, while in the previous fiscal year, it had reached a record $2.215 billion.
Returned to the United Arab Emirates, the second-highest amount increased to $273 million in FY24 from a pitiful $14.8 million in FY23. The largest shareholder in Pakistan’s banking industry is the UEA. In calendar 2023, the sector’s profitability nearly doubled compared to the year before.
By maintaining billions of dollars in the State Bank account to supplement the declining foreign exchange reserves, China and the UAE have further assisted. Pakistan is in talks to reschedule debts with China and the UAE.
Significant gains from Pakistan’s overseas assets were also returned to other nations in FY24. Kuwait earned $96 million, the USA $158 million, France $108.8 million, and the Netherlands $240 million.
In the latter part of FY24, the SBP permitted the majority of the repatriations.
