ISLAMABAD: Foreign investors repatriated $1.55 billion in profits and dividends from Pakistan during the first eight months of the current fiscal year (FY25), marking a 104% increase from $760 million in the same period last year.
The sharp rise of $791 million reflects improved economic conditions and investor confidence, according to the State Bank of Pakistan (SBP).
Repatriation from Foreign Direct Investment (FDI) surged by 110% to $1.486 billion in July-Feb FY25, compared to $705 million in the corresponding period last year.
Meanwhile, outflows from Foreign Portfolio Investment (FPI) amounted to $65 million, up from $55.5 million.
On a month-on-month basis, foreign firms transferred $233.3 million abroad in February 2025 as profits and dividends. Of this amount, $232.6 million was related to FDI earnings, while $0.7 million was attributed to FPI returns.
Among the industries, the food sector recorded the highest outflows, repatriating $291 million during July-Feb FY25. The power sector followed with $233 million, while financial businesses transferred $192 million.
Analysts attribute the increase to Pakistan’s improving external accounts, which have allowed foreign businesses greater flexibility in transferring earnings abroad.
They note that higher outflows indicate a gradual economic recovery, with companies regaining trust in Pakistan’s financial stability.
Last year, the government imposed temporary restrictions on profit repatriation to manage external liabilities and stabilize foreign exchange reserves. However, the latest data suggests these limitations have been eased, allowing foreign companies to transfer funds without restrictions, signaling policy normalization and improved forex liquidity.
