Foreign investors repatriated $1.68 billion in profits and dividends from Pakistan during the first seven months of fiscal year 2026 (7MFY26), marking a 26.26% year-on-year increase compared to $1.33bn transferred abroad during the same period of the previous fiscal year. The figures, released by the State Bank of Pakistan (SBP), underline a significant rise in outward profit flows amid improving corporate earnings and easing external payment conditions.
According to the central bank’s latest data, foreign companies repatriated $1.62bn in profits against foreign direct investments (FDI) across various sectors during 7MFY26, compared to $1.26bn in the corresponding period of last year. This reflects a 27.92% YoY increase in FDI-related profit outflows, indicating stronger earnings by multinational corporations operating in Pakistan and greater confidence in transferring returns to parent entities abroad.
In contrast, outflows linked to portfolio investments declined during the review period. Payments against portfolio investment stood at $59.87 million in 7MFY26, down 6.56% from $64.07m recorded in 7MFY25. The decline suggests relatively lower repatriation activity from foreign portfolio investors compared to direct investors, potentially reflecting shifts in equity market exposure or dividend distributions.
On a monthly basis, January 2026 recorded profit and dividend repatriation of $118.93m by foreign firms. The monthly figure highlights the continued momentum in outward payments, consistent with the broader trend observed during the fiscal year to date.
Sector-wise data reveals that the power sector led all industries in terms of profit repatriation. During 7MFY26, foreign investors in the power segment transferred $400.19m abroad, the highest among all sectors. The financial business sector followed closely, with total outflows amounting to $371.33m over the same period. These two sectors together accounted for a substantial portion of overall repatriation, underscoring their dominant share in foreign investment holdings.
The food sector also recorded a notable rise in profit outflows, with repatriation reaching $142.39m during 7MFY26. Meanwhile, payments on total foreign investment in the communications sector stood at $132.3m, while the transport sector saw outflows of $91.11m. The sectoral breakdown indicates that essential infrastructure, consumer-driven industries, and financial services remain key areas for foreign capital deployment and earnings generation.
A country-wise breakdown provided by the SBP shows that investors from the United Kingdom repatriated the largest share of profits and dividends during the review period. Firms and individual investors from the UK transferred $442.76m from Pakistan in 7MFY26, slightly higher than the $434.03m recorded in the same period last year. In January alone, payments to the United Kingdom amounted to $20.5m.
China emerged as the second-largest source of repatriated profits, with $413.11m transferred abroad during 7MFY26. This represents a sharp increase compared to $104.86m repatriated in the corresponding period of 7MFY25, reflecting the growing footprint of Chinese investment in Pakistan across infrastructure and energy projects.
The Netherlands ranked third, with profit repatriation totaling $151.36m during the seven-month period, up from $71.44m in the previous fiscal year’s comparable timeframe. The United States followed, with $145.93m in profits and dividends repatriated during 7MFY26.
The latest figures point to a broad-based increase in outward profit flows, driven primarily by FDI-backed enterprises in power generation, financial services, and consumer sectors, while portfolio investment outflows showed a modest contraction.
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