Profit repatriation rises to $2.31bn

ISLAMABAD: Foreign investors repatriated $2.305 billion in profits and dividends from Pakistan during fiscal year 2025-26, up from $2.219 billion a year earlier, according to State Bank of Pakistan data released on Monday.

The total included $2.202 billion in payments linked to foreign direct investment and $103.7 million related to foreign portfolio investment. In June 2026 alone, repatriation amounted to $151.4 million, comprising $140.6 million in FDI earnings and $10.8 million in FPI payments.

The increase came as Pakistan’s external account conditions improved, with better foreign exchange reserves and dollar liquidity helping companies clear pending profit and dividend transfers. During the period of severe foreign exchange shortages, a number of multinational firms had reported delays in sending earnings abroad because of restrictions on dollar outflows.

Sector-wise distribution

According to the SBP’s Broad Structure data, manufacturing remained the biggest contributor to profit and dividend outflows, although the amount declined to $564.3 million in FY26 from $614.6 million in the previous fiscal year.

Financial and insurance activities ranked next at $537.4 million, rising from $384.9 million a year earlier. The electricity, gas, steam and air-conditioning supply sector also posted a notable increase, with repatriation reaching $496.5 million compared with $401.7 million in FY25.

Other major sectors included wholesale and retail trade at $211.6 million, information and communication at $166.9 million, and transportation and storage at $162.1 million. Mining and quarrying accounted for $124.6 million, while other service activities and administrative and support services recorded $13.9 million and $12.8 million respectively.

Beyond those sectors, investors repatriated $9.3 million from professional, scientific and technical activities, $3.6 million from accommodation and food service activities, and $2 million from construction. Agriculture, forestry and fishing, water supply, sewerage, waste management and remediation activities, and human health and social work activities each accounted for $0.1 million. No profit or dividend repatriation was recorded during FY26 in real estate, education, or arts, entertainment and recreation.

Country-wise outflows

By destination, the United Kingdom remained the largest recipient of repatriated profits and dividends at $621.2 million, followed by China at $486.5 million. The United States received $191.4 million and the Netherlands $190.6 million, while investors based in the United Arab Emirates repatriated $150.3 million.

Other significant destinations were Switzerland with $102.2 million, Hong Kong with $87.3 million, Kuwait with $80.2 million, Japan with $53 million, Norway with $47.9 million, South Korea with $44.8 million, Germany with $39.4 million, and Singapore with $38.5 million.

Repatriation also totalled $24.8 million each to Bahrain and Türkiye, $16.5 million each to Malaysia and Malta, $14.9 million to Denmark, and $9.6 million to Saudi Arabia. The distribution broadly reflected the origins of major foreign investors in Pakistan, particularly in banking, power, telecommunications, consumer goods and manufacturing.

External account improvement

The latest figures indicate an easing in external payment constraints compared with the acute shortages seen over the past two years, when several multinational companies faced delays in remitting profits and dividends abroad. The rise in outflows also points to improved investor ability to transfer legitimate earnings as payment bottlenecks have eased.

At the same time, the figures underscore the importance of stronger fresh foreign direct investment inflows to balance rising profit repatriation, expand productive capacity, support exports and strengthen the external account over the longer term.