KARACHI: Foreign companies operating in Pakistan repatriated more than USD 1.6 billion in profits and dividends during the first seven months of the current fiscal year (FY26), reflecting improved business activity and eased payment flows.
Data released by the State Bank of Pakistan (SBP) showed that repatriation of profit and dividend by the foreign investors rose by 26 percent during this fiscal year.
Cumulatively, foreign investors repatriated USD 1.678 billion in profits and dividends during July-January of FY26, compared with USD 1.329 billion in the same period last year (FY25). This represents an increase of USD 349 million in returns on both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).
READ MORE: Profit repatriation by foreign investors up 27% in 1H FY26
Analysts said that the higher outflows are primarily attributed to stronger economic and industrial activity, which boosted corporate earnings, as well as the absence of government restrictions on the repatriation of profits and dividends.
With current growth, the repatriation of profit and dividend is likely to above the USD 2 billion mark by end of this fiscal year.
However, they noted that despite the outflow and massive debt servicing, the SBP has successfully managed to build its foreign exchange reserves, which reached USD 16.2 billion mark in the second week of February.
A detailed breakdown shows that the entire increase in outflows was driven by higher returns FDI, which accounted for about 96 percent of total repatriations. In contrast, profit and dividend payments under portfolio investment registered a decline, indicating a downward trend despite improved performance in the equity market.
According to the SBP, returns on FDI recorded a strong growth of 28 percent during the first seven months of the current fiscal year, rising by USD 353 million.
Foreign investors repatriated USD 1.618 billion in FDI returns during July-January FY26, compared with USD 1.265 billion in the corresponding period of the previous fiscal year.
During the period under review, repatriation under FPI stood at USD 60 million, slightly lower than USD 64.1 million recorded in the same period last year.
On a monthly basis, foreign investors repatriated about USD 118.7 million in January 2026, including USD 118.5 million in FDI returns and a minor outflow of USD 0.2 million in portfolio investment returns.
Copyright Business Recorder, 2026
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