KARACHI: Repatriation of profits and dividends by foreign investors rose sharply 27 percent in the first half of the current fiscal year (FY26), highlighting stronger earnings outflows from Pakistan.
The State Bank of Pakistan (SBP) on Tuesday reported that foreign companies operating in the country repatriated USD 1.559 billion in profits and dividends during July-December of FY26 compared to USD 1.226 billion in the same period last year (FY25). The increase translates into an additional USD 333 million sent abroad as returns on both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).
Analysts said that the higher repatriation of profit and dividend reflects improved profitability of some foreign-owned businesses as well as relatively smoother transfer of the foreign exchange compared to the previous year.
The detailed analysis revealed that returns on FDI accounted for the bulk of the outflows, as multinational companies transferred profits generated from sectors such as power, telecommunications, and financial services. However, repatriation under the portfolio investment, indicating witnessed downward trend despite improved performance of the equity market.
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According to SBP, some 96 percent amount was sent abroad as returns on FDI, while the remaining 4 percent from FPI. Foreign investors repatriated USD 1.5 billion on account of return on FDI during the last fiscal year as against USD 1.16 billion in corresponding period of last fiscal year, showing an increase of 29 percent or 337 million.
During the period under review, returns on FPI stood at USD 60 million, slightly lower than USD 64 million recorded in the corresponding period of last year.
On a monthly basis, around USD 89 million was repatriated in December 2025, including USD 81 million on account of FDI and USD 8 million as returns on portfolio investment.
Sector-wise, the financial business recorded the highest outflow of profits and dividends in the first half of the current fiscal year, amounting to USD 369 million, compared with USD 164 million in the corresponding period of the previous fiscal year. The power sector ranked second, with repatriations totalling USD 359 million during July-December of FY26, up from USD 178 million in the same period last year.
Copyright Business Recorder, 2026
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