Karachi – Pakistan witnessed a significant increase in profit and dividend outflows during the first half of the ongoing fiscal year, as foreign investors repatriated $1.56 billion between July and December FY2025-26, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
The SBP data indicates that total profit repatriation rose by 27% compared to $1.23 billion recorded during the same period in the previous fiscal year, reflecting higher returns withdrawn by foreign investors operating in the country.
Profit repatriation linked to Foreign Direct Investment (FDI) rose sharply by 29%, reaching $1.50 billion in 1HFY26, up from $1.16 billion in the corresponding period last year. In contrast, repatriation related to Foreign Portfolio Investment (FPI) declined by 7% to $59.6 million, compared with $63.8 million a year earlier.
Country-wise analysis shows that investors from the United Kingdom led the outflows, repatriating approximately $422 million during the first half of the fiscal year. Chinese investors followed closely with outflows of about $385 million, while the United States and the Netherlands accounted for $126 million and $125 million, respectively.
Sector-wise, the power and financial sectors contributed the largest share of profit and dividend repatriation. The food and transport sectors also featured among the notable contributors to overall outflows during the period.
The increase in repatriation highlights both the returns generated by foreign investments in Pakistan and the ongoing engagement of international investors across multiple sectors, particularly in power and finance. The data also underscores the need for policies that balance investor confidence with the domestic retention of profits to support economic growth and liquidity.
As Pakistan continues to attract foreign investment, understanding sectoral and country-specific outflows provides insights into trends in investor behaviour and potential impacts on the national economy.
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