July-April repatriation of profits, dividends rises 108pc YoY

KARACHI: The repatriation of profits and dividends from foreign investments in Pakistan posted a notable 108 percent increase during the first ten months of the current fiscal year (FY25), reflecting improving economic conditions and investor confidence.

According to the State Bank of Pakistan (SBP), foreign investors repatriated some $1.841 billion during July-April of FY25, compared to $883 million in the same period of FY24, showing a significant rise of $958 million.

Most of the repatriation was made from the Foreign Direct Investment (FDI). Repatriation of profits and dividends on FDI rose by 117 percent to $1.752 billion in July-April FY25 as against $807 million in the corresponding period last year.

Repatriation of profit from Foreign Portfolio Investment (FPI) surged by 18 percent to $89 million during the first ten months of FY25, compared to $75.4 million in the same period of FY24.

Analysts attributed the surge to improvements in Pakistan’s external accounts, which have enabled foreign businesses operating in the country to repatriate their profits and dividends more freely, without regulatory restrictions. The increase in outflows also reflects a gradual economic recovery, as foreign companies’ earnings continue to improve.

Last year, the federal government imposed some restrictions on profit repatriation to manage external liabilities and preserve foreign exchange reserves. However, as the restrictions have been removed, the repatriation of profit and dividend is rising.

During April 2025, the repatriation of profits and dividends in Pakistan increased by 115 percent YoY. On a month-on-month basis, foreign firms transferred $121 million abroad in April 2025 including $113 million from FDI earnings, while $18.4 million as FPI returns.

Copyright Business Recorder, 2025