Foreign investors transfer $1.1 billion in profits, dividends abroad in five months

The repatriation of profits and dividends by foreign investors surged by 112% to $1.129 billion in the first five months of the current fiscal year (FY25), compared to $523 million during the same period in the previous fiscal year (FY24), reflecting an increase of $597 million, according to data from the State Bank of Pakistan (SBP).

A significant portion of these outflows—$1.074 billion—was on account of Foreign Direct Investment (FDI) returns, a 118% jump compared to $492 million in the corresponding period of FY24. 

Meanwhile, $54 million was repatriated as returns on Foreign Portfolio Investment (FPI), an increase from $41 million last year.

In November 2024 alone, $322 million were repatriated, comprising $302 million on Foreign Direct Investment returns and $20 million on Foreign Portfolio Investment.

Sector-wise data indicates that the food sector led the repatriation figures, with $247 million sent abroad in profits and dividends, compared to $68.6 million during the same period last year. 

The financial sector followed with $160 million in outflows, while the power sector accounted for $157 million.

Analysts noted that the sharp rise underscores the increasing profitability of foreign investments in Pakistan, supported by improved financial performance in key sectors.