KARACHI: Repatriation of profits and dividends by the foreign investors sharply rose by 86 percent in the first quarter of this fiscal year (FY26) mainly due to improved earnings.
According to the State Bank of Pakistan (SBP), the foreign investors repatriated USD 751.7 million in profits and dividends during July-September FY26, compared to USD 404.5 million in the same period of the previous fiscal year (FY25), reflecting an increase of USD 347.2 million.
Analysts said that despite the challenging macroeconomic conditions, foreign investors continued to demonstrate resilience and long-term confidence in Pakistan’s market, recording substantial contributions across all key financial indicators.
Jul profit repatriation soars 75pc to $244m YoY
They said that the massive rise reflects a notable improvement in earnings of the foreign companies and easing of foreign exchange restrictions earlier this year.
According to recent report with 34 percent growth, Overseas Investors Chamber of Commerce and Industry (OICCI) member companies, achieved a profit before tax (PBT) of Rs1.2 trillion during 2024. The aggregate turnover exceeded Rs11 trillion, with members contributing Rs2.7 trillion in government levies and taxes.
As per details, most of amount was repatriated on account of return on Foreign Direct Investment (FDI). With an increase of 92.5 percent, repatriation of profit and divided from the FDI stood at USD 734 million in the first quarter of this fiscal year, compared to USD 382 million in the corresponding period of FY25.
However, during the period under review, profit outflows on portfolio investment (FPI) declined to USD 17 million from USD 23 million.
The China remained the largest recipient of repatriated profits, taking out USD 205 million in the quarter, followed by the United Kingdom with USD 162 million, the Netherlands with USD 92 million, and United States with USD 69 million.
With improved foreign inflows and stronger foreign exchange management, the State Bank has lifted all restrictions on profit and dividend repatriation to facilitate foreign investors. This policy shift led to a sharp rise in the outflow of profits and dividends during the period.
Month on Month basis, an amount of USD 159 million was repatriated by the foreign investors. This included USD 143.2 million on account of FDI and USD 15.8 million from FPI.
industries remained key contributors, accounting for the majority of turnover, assets, and taxes. The Banking and Finance sector alone represented 73 percent of total member assets, reflecting both profitability and expansion across financial services.
Commenting on the findings, Secretary General OICCI M Abdul Aleem, stated: “The continued performance of OICCI members, who come from 30 countries and operate in 13 key sectors, is a testament to their deep-rooted commitment to Pakistan’s progress.
Even in the face of global volatility and domestic challenges, OICCI members have not only sustained but expanded their investments, creating jobs, paying significant taxes, and driving innovation across industries. As the first port of call for foreign investors in Pakistan, OICCI will continue to advocate for policy reforms that unlock greater potential, attract new FDI, and ensure sustainable economic growth.”
With representation from over 30 countries across 13 diverse sectors, OICCI member companies are among the largest contributors to Pakistan’s exchequer, infrastructure development, and export competitiveness.
Copyright Business Recorder, 2025
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