KARACHI: Foreign investors repatriated $1.72 billion in profits from their investments in Pakistan during the first nine months (July-March) of the ongoing fiscal year 2024-25. This amount is up by 108% from the $826 million in profits repatriated during the same period last year, according to the latest data released by the State Bank of Pakistan (SBP).
According to a report by Arif Habib Limited (AHL), the repatriation of profits and dividends saw a 140% increase in March 2025, compared to the same month last year, totaling $157.9 million. However, on a month-on-month basis, it declined by 32.3%.
Breaking down the data, the power sector led with a repatriation of $83.3 million, showing a 19-fold increase year-on-year and a 64.5% rise compared to February. Meanwhile, food sector repatriation dropped by 97% YoY to just $0.4 million.
The financial business sector saw a 26% decrease YoY, with $21.6 million in repatriated profits, and the communications sector faced a notable 75% drop. Other sectors, including oil and gas, tobacco, transport, and petroleum refining, also witnessed mixed results, with some showing significant reductions in repatriation figures.
The United Kingdom’s investors sent the largest amounts back home, with $511.2 million in profits flowing out of Pakistan, a sharp increase from $154 million last year.
China, Pakistan’s largest foreign investor, also saw a major uptick in profit outflows, which rose to $221.4 million from $79.7 million in FY24. This shift highlights the growing financial ties between the two countries.
In contrast, profit repatriation to the United States increased almost fourfold, reaching $190 million, compared to $48 million in the previous fiscal year.
The United Arab Emirates, once a leading trade partner for Pakistan, saw a decrease in profit outflows, with $146 million sent back compared to $178 million last year.
This increase in profit repatriation comes as a result of a more lenient stance from the SBP, in line with suggestions from the International Monetary Fund (IMF) to allow higher repatriation of profits.
The data highlights that, despite Pakistan’s foreign exchange reserves being at an eight-month low, the SBP remains optimistic about raising total reserves to $14 billion, surpassing its initial target of $13 billion. A key driver of this optimism is higher-than-expected remittances, with the SBP forecasting $38 billion by the end of FY25.
