Repatriation of profits and dividends from foreign investment in Pakistan stood at $264 million in May 2025, showing a significant 71% year-on-year (YoY) decline but a sharp 117% month-on-month (MoM) increase, according to data released by the State Bank of Pakistan (SBP).
During the first 11 months of fiscal year 2024-25 (11MFY25), total repatriation reached $2.1 billion, reflecting a 16% YoY growth compared to $1.8 billion during the same period of last year, according to Arif Habib Limited.
Among different sectors, the financial business segment led outflows in May with repatriation worth $76.4 million, despite a steep 76% YoY drop. The power sector followed with $56.5 million, down 51% YoY.
On the contrary, the cement sector saw a notable surge of 229% YoY to $5.4 million while the chemical sector posted an even stronger increase of 929% YoY to $5.3 million. Moreover, repatriation from oil and gas exploration sector skyrocketed 997% YoY to $36.4 million whereas the transport sector registered a rise of 92% YoY to $1.9 million. Communication and beverage sectors witnessed sharp declines of 86% and 85% YoY, respectively.
For the cumulative 11MFY25 period, the power sector remained the largest contributor with total repatriation of $396.2 million, followed by financial businesses at $364.6 million. A substantial growth was recorded in repatriation from oil and gas exploration firms (up 1,143%) and tobacco and cigarette sector (up 157%).
On a monthly basis, profit and dividend repatriation peaked in May 2024 at $918 million while May 2025 marked a significant recovery over the previous month but its figure was considerably lower compared to last year's high.
T-bills oversubscribed
The State Bank conducted an auction of Market Treasury Bills (MTBs) with a tenor of 22 days on Wednesday. A total amount of Rs915.6 billion was raised against the target of Rs900 billion, exceeding by Rs15.6 billion. The cut-off yield stood at 11.3067% while the weighted average yield was slightly lower at 11.2952%.
Currency in circulation saw a notable week-on-week (WoW) increase of 5.5% to reach Rs10.83 trillion as of June 6, 2025, according to data released by the SBP and compiled by AKD Securities. This represents an 18.9% increase so far in the current calendar year, reflecting heightened cash demand in the economy. Broad money (M2), however, remained largely flat on a weekly basis at Rs38.1 trillion, showing no significant change from the previous week. In calendar year 2025, M2 has risen 6.9%, primarily driven by a sharp rise in currency in circulation.
Meanwhile, the Pakistani rupee posted a slight loss against the US dollar, slipping 0.05% in the inter-bank market on Wednesday. By the end of trading, the rupee closed at 283.55, down 14 paisa compared to the previous day's close at 283.41.
Gold prices in Pakistan declined following stagnation in the international market where metal prices were little changed as investors waited for the Federal Reserve's policy decision and comments from Fed Chair Jerome Powell while platinum surged to a more than four-year peak.
In the local market, the price of gold per tola dropped Rs2,245 to settle at Rs383,055. Similarly, the price of 10 grams of gold fell Rs1,925, reaching Rs307,831, according to the All Pakistan Sarafa Gems and Jewellers Association. In the global market, spot gold was steady at $3,387.89 an ounce by 1545 GMT, according to Reuters.
Interactive Commodities Director Adnan Agar stated that the gold market remained uncertain, trading between $3,370 and $3,400, with its direction largely dependent on developments in the Israel-Iran conflict.
If the war escalates with involvement of the US, gold prices are likely to surge. However, if tensions ease and peace talks progress, prices may stay range bound or decline. The upcoming US monetary policy decision could also influence prices, though any impact is expected to be limited if the outcome matches market expectations, Agar said.
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