Foreign investors repatriate over $2 billion from Pakistan in FY26

KARACHI: Foreign investors repatriated more than $2 billion in profits and dividends from Pakistan during the first ten months of FY26 (July–April).

This reflect an 8.66% increase compared to the same period last year, as improved foreign exchange availability and stronger corporate earnings enabled multinational companies to transfer higher returns to their parent firms abroad.

According to data released by the State Bank of Pakistan (SBP) on Thursday, total profit and dividend outflows reached $2.0007 billion during July–April FY26, compared with $1.8413 billion in the corresponding period of FY25.

Of the total, $1.92 billion was repatriated under foreign direct investment (FDI), while $80.7 million was recorded under foreign portfolio investment (FPI).

Investors from the United Kingdom remained the largest recipients of profit and dividend repatriations from Pakistan, receiving $556.4 million accounting for more than a quarter of total outflows.

The figure highlights the significant presence of UK-linked multinational corporations operating across Pakistan’s energy, consumer goods, financial services, and telecommunications sectors.

China emerged as the second-largest destination, with profit remittances rising sharply to $439.5 million from $222.8 million in the same period last year.

The increase underscores the expanding scale and maturing phase of Chinese investments in Pakistan, particularly in power generation and infrastructure development under the China-Pakistan Economic Corridor (CPEC).

Among other key recipients, the Netherlands received $175.5 million, followed by the United States at $169 million and the United Arab Emirates at $130.4 million.

Switzerland also recorded a notable rise, with inflows nearly doubling to $94 million, indicating improved profitability among Swiss-associated enterprises operating in Pakistan.

The Gulf region accounted for a meaningful share of repatriations, with Kuwait receiving $60.3 million, Bahrain $19.9 million, Saudi Arabia $9.2 million, and Lebanon $7.5 million, reflecting their long-standing presence in Pakistan’s banking, energy, and industrial sectors.

From East Asia, Japan received $43.5 million, South Korea $43.3 million, Hong Kong $31.9 million, Singapore $18.8 million, and Malaysia $14.4 million. European economies including Germany, Türkiye, Denmark, Italy, Luxembourg, Austria, and Ireland also registered profit repatriations of varying magnitudes.

In April 2026 alone, foreign investors repatriated $172 million. The largest monthly transfers were directed to the United Kingdom ($80.8 million), Switzerland ($32.6 million), the Netherlands ($17.5 million), Bahrain ($7.4 million), and the United States ($8.1 million).

Analysts noted that the upward trend reflects both improved profitability of multinational firms operating in Pakistan and a gradual normalization of the external sector.

In previous years, several foreign companies faced delays in repatriating profits due to foreign exchange constraints; however, the latest figures indicate that such pressures have eased considerably.

Sector-wise, financial services emerged as the largest contributor to profit outflows at $523.2 million, followed closely by the power sector at $478.2 million, driven primarily by coal, hydel, and thermal energy projects.

Significant repatriations were also recorded in communications, food, telecommunications, transport, pharmaceuticals, beverages, oil and gas exploration, petroleum refining, cement, and chemicals.

While rising profit repatriation exerts pressure on the external account, it also serves as a key indicator of investor confidence and improved operational conditions for multinational firms in Pakistan.

The latest data suggests a gradual stabilization in the country’s external sector, even as policymakers continue efforts to attract new foreign direct investment into productive and export-oriented sectors of the economy.