Pakistan has seen a significant surge in profit and dividend outflows, which jumped by 112% during the first five months of the current fiscal year (FY25), as compared to the same period last year. According to the latest data from the State Bank, the outflow reached $1.129 billion from July to November FY25, up from $532 million during the same months in FY24.
This increase follows a strengthening of the country’s foreign exchange reserves, which have exceeded $12 billion, with projections of reaching $13 billion by the end of FY25. After last year’s restrictions on profit outflows—criticized by the IMF—the government has gradually eased these controls as reserves have improved, in line with support from the IMF, World Bank, and ADB.
The food sector topped the list of outflows, sending $247 million abroad, a sharp rise from $68 million the previous year. The financial sector followed closely, with $160 million leaving the country, compared to $58 million in FY24. The power sector also experienced a threefold increase in outflows, while other notable sectors contributing to the outflow include tobacco, petroleum, and oil and gas exploration. November alone saw a 586% spike in outflows compared to the previous year, and experts predict an even higher amount in December due to the year-end.
NEWS DESK
PRESS UPDATE