KARACHI: Foreign investors repatriated $244.0 million in profits and dividends from Pakistan in July 2025, reflecting a significant 75.3% increase compared to $139.1 million in the same month last year, according to the latest data from the State Bank of Pakistan. The rise in repatriations signals growing confidence in Pakistan’s economic outlook and the profitability of foreign investments.
The bulk of the outflows came from Foreign Direct Investment (FDI), with $243.8 million being repatriated, while only $0.2 million was repatriated through Foreign Portfolio Investment (FPI). Chinese investors were the largest contributors, sending back $88.8 million, marking a dramatic 438% increase from $16.5 million in July 2024.
This surge is largely attributed to the profitability of Chinese investments under the China-Pakistan Economic Corridor (CPEC).The United Arab Emirates ranked second with $43.5 million in repatriations, a 110% increase from $20.7 million last year, reflecting strong economic ties and successful investments in various sectors in Pakistan.
Meanwhile, European investors displayed mixed patterns. The UK saw a slight decrease, with repatriations falling to $25.6 million from $29.9 million in the previous year. However, the Netherlands recorded a sharp rise, with $20.2 million repatriated, up from just $2.9 million in 2024, suggesting expanding Dutch interest in Pakistan.
German investors repatriated $17.9 million, a notable increase compared to last year, while French investors showed a decline from $30.6 million to just $0.6 million. American and Japanese investors repatriated $6.2 million and $7.8 million, respectively, showing a slight decline compared to 2024. Notably, countries that had no repatriations last year, such as Austria, Denmark, Finland, Italy, and Saudi Arabia, recorded some activity in 2025, indicating a growing diversity of foreign investors.
Sector-wise, coal-based projects saw the highest repatriations, with $60.6 million flowing out in July 2025, compared to zero last year. The pharmaceuticals sector emerged as another key contributor, with $22 million in repatriations, a sharp increase from $0.2 million in the previous year. Mining and quarrying operations also saw significant growth, contributing $19.7 million, compared to no repatriations last year.
In contrast, the transport sector saw a decline in repatriations, down to $16.8 million from $21.2 million in 2024, while the petroleum refining sector saw a dramatic increase, with $15.4 million repatriated compared to just $0.1 million in 2024.
The rise in repatriations highlights successful business operations in Pakistan and reflects positively on the country’s investment climate. However, the increase in capital outflows underscores the importance of attracting fresh foreign investment to maintain a healthy balance of payments. Government efforts to improve the ease of doing business and create investor-friendly policies seem to be paying off, with increasing investor interest from a wider range of countries.
