With the repatriation of profits on foreign investments falling by 83.41 percent year over year (YoY) in July–November of the current fiscal year 2022–23, Pakistan has become one of the least desirable moneymaking markets for foreign investors due to the outflow of dollars and the deteriorating state of the economy.
The State Bank of Pakistan (SBP) revealed that paid earnings from foreign investments in the nation decreased to $128.7 million in the first five months of FY23 from $776 million reported in the same fiscal year, with the real estate sector accounting for the majority of the decline.
While entities and individual investors from the UAE made $10 million in profit repatriation during the period, a decrease of 68.35 percent YoY from $31.6 million in 5MFY22, US investors earned $21.1 million during the period, compared to $125.8 million during the same period the previous fiscal year.
During 5MFY23, Chinese investors returned $17 million from Pakistan, a 72.5 percent decrease from the $61.8 million reported during the same period in the previous year.
Recently, a combination of internal and international economic and political barriers has impeded investment inflows. The equities market and debt securities are expected to struggle as the nation continues to strive to escape today’s economic crisis, and market participants are unsure of when business would return to normal levels.