Foreign Investors Repatriate $1.55 Billion Profit Out of Pakistan in 8 Months

The repatriation of profits and dividends from foreign investments in Pakistan surged by 104% during the first eight months of the current fiscal year (FY25). According to the State Bank of Pakistan (SBP), foreign investors repatriated $1.55 billion from July to February of FY25, a substantial increase from $760 million during the same period in FY24, marking a rise of $791 million. Analysts attribute this to the ongoing improvement in Pakistan’s external accounts, which has allowed foreign businesses to repatriate their revenues more freely since the beginning of FY25. This trend is seen as a positive indicator of a gradual economic recovery, as companies regain confidence in the country’s financial stability. Foreign Direct Investment (FDI) during the same period reached $1.6 billion, reflecting a 41% year-on-year increase. Last year, the government imposed temporary restrictions on profit repatriation to manage external liabilities and maintain foreign exchange reserves. However, the recent surge in repatriation suggests that authorities are now permitting foreign companies to transfer their earnings abroad without restrictions, signaling a normalization of policy and improved forex liquidity. The repatriation of profits and dividends from FDI alone surged by 110%, totaling $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 during the first eight months of FY25, up from $55.5 million in FY24. In February 2025 alone, foreign firms transferred $233.3 million abroad as profits and dividends, with $232.6 million attributed to FDI earnings and $0.7 million to FPI returns. The Food Sector led the outflows, repatriating $291 million, followed by the Power Sector at $233 million and Financial Businesses at $192 million during the July-Feb FY25 period.