Foreign investors significantly increased the repatriation of profits and dividends from Pakistan during the first half of fiscal year 2026, reflecting improved liquidity conditions and sustained earnings across several key sectors. According to the latest data released by the State Bank of Pakistan (SBP), total profit and dividend repatriation reached $1.56 billion in 6MFY26, marking a year-on-year increase of 27.16% compared to $1.23bn in the same period last year.
The bulk of these outflows came from foreign direct investment-related profits. During the review period, foreign companies repatriated $1.5bn against FDI in various sectors, up from $1.16bn in the corresponding period of the previous fiscal year. This represents an increase of nearly 29% YoY, indicating stronger profitability among foreign-owned enterprises operating in Pakistan despite broader macroeconomic challenges.
In contrast, payments made against portfolio investment declined during the period. Profit outflows related to portfolio investments stood at $59.6m in 6MFY26, compared to $63.8m in the same period last year, reflecting a decrease of 6.58% YoY. This decline suggests relatively subdued activity or lower returns for foreign portfolio investors during the first half of the fiscal year.
On a monthly basis, December 2025 alone witnessed profit and dividend repatriation of $88.8m by foreign firms, underscoring steady outflows even toward the end of the calendar year.
Sector-wise analysis shows that the Financial Business sector accounted for the highest repatriation, with outflows amounting to $368.9m during 6MFY26. This was followed closely by the Power sector, which recorded profit outflows of $358.8m, reflecting continued returns on long-term energy investments. The Food sector also saw a notable increase, with repatriated profits rising to $123.7m during the period.
Meanwhile, payments under the Communications sector reached $117.7m, while the Tobacco and Cigarettes sector recorded outflows of $81.2m. These figures highlight that repatriation was concentrated in sectors with relatively stable cash flows and established foreign investment presence.
Country-wise data reveals that investors from the United Kingdom repatriated the largest share of profits, amounting to $422.2m during 6MFY26, broadly in line with the $423.7m recorded in the same period last year. In December alone, payments to the UK stood at $19.3m.
China emerged as the second-largest destination for profit repatriation, with $385.3m sent abroad during 6MFY26, a sharp increase from $102.2m in 6MFY25. The United States ranked third, with profit outflows of $126m, down from $158.4m in the previous year. The Netherlands followed closely, with $125.2m repatriated during the review period.
Overall, the rise in profit repatriation reflects improved earnings for foreign investors and relatively smoother foreign exchange management, while also highlighting the ongoing need to balance investor confidence with external account sustainability.
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