Dollar outflows rise five times in 2MFY2025

The dollar outflows from Pakistan have increased five times in two months of the current fiscal year after the multinational companies sent profit and dividends to international accounts, according to State bank of Pakistan.

The data shared by the central bank showed that the outflow of profit reached $274.7 million from July to August of FY2024-25, it was $49.2 million in the same period of the corresponding year.

The first three months of the previous fiscal year were highly disappointing for international investors in Pakistan; however, the next three months appeared much better. At the end of FY24, the outflow of profit had reached $2.12 billion.

According to the data, a profit of $139.1 million in July and $135.6 million in August were transferred to foreign countries. Meanwhile, it increased to $415 million in June due to the several repayments.

The outflow of profit increased to $596 million to the banks in the first two months of FY25, compared to $370 million in the same period of the previous year.

Similarly, profit outflow from cigarettes and tobacco was $431 million, $349 million from food, $360 from transport, and $320 million from the power sector.

On the other hand, the foreign exchange reserves held by the SBP rose by $24 million to $9.533 billion.

The total foreign exchange reserves of Pakistan reached $14.87 billion, according to the data shared by the SBP on September 20.