The State Bank of Pakistan (SBP) has released updated figures showing that foreign investors repatriated a total of $2.22 billion in profits and dividends during the fiscal year 2024–25 (FY25), indicating a marginal increase from the previous year’s total of $2.215 billion. Despite the modest rise, the trend reflects continued investor engagement across key sectors of the Pakistani economy.
According to the SBP’s data, the lion’s share of these outflows came from Foreign Direct Investment (FDI), which accounted for $2.105 billion of the total profit and dividend repatriation during the fiscal year. This represents a slight uptick compared to $2.085 billion in FDI-based repatriations recorded during FY24. Meanwhile, repatriation under Foreign Portfolio Investment (FPI) showed a mild downturn, declining to $115 million in FY25 from $130 million the previous year.
The manufacturing sector emerged as the top contributor to outbound profit flows, with foreign firms repatriating $615 million in FY25—up from $523 million in FY24. This robust increase reflects higher operational profitability and enhanced returns for foreign investors engaged in Pakistan’s industrial base, particularly in areas such as consumer goods, pharmaceuticals, and auto parts.
Trailing the manufacturing industry was the electricity, gas, steam, and air conditioning supply sector, which saw foreign investors repatriate $401 million in profits. This figure marks a significant jump from the $248 million repatriated in the previous fiscal year, underscoring the growing investor interest and performance within Pakistan’s energy sector amid expanded infrastructure projects and regulatory adjustments.
Conversely, the financial and insurance sector experienced a sharp downturn in repatriated profits, dropping to $385 million in FY25 compared to $638 million in FY24. This decline is being interpreted by analysts as a likely response to tighter monetary policies, narrowing spreads, and broader global volatility affecting profitability in financial institutions.
While profit repatriation figures are often scrutinized for their impact on foreign exchange reserves, the SBP clarified that these flows are part of normal international investment practices and reflect the sustained confidence of foreign entities in the long-term prospects of Pakistan’s economy. The central bank emphasized that the country continues to uphold transparent and balanced policies that protect investor rights while supporting local economic growth.
The SBP further stated that these profit outflows are closely monitored as part of its broader external sector management strategy, which aims to ensure equilibrium in foreign exchange operations and macroeconomic stability. Repatriation of profits, dividends, and royalties by foreign companies is permitted under Pakistan’s investment laws, subject to documentation and regulatory approvals.
This latest data set serves as a barometer for investor engagement and sectoral performance in Pakistan, providing valuable insight into how different segments of the economy are delivering returns to international stakeholders. With policy adjustments underway and energy and manufacturing sectors seeing upward movement, FY25’s repatriation trends point toward an evolving and cautiously optimistic investment climate.