KARACHI: The repatriation of profits and dividends by foreign investors rose sharply in the first four months (July–October) of FY26, reaching $1.137 billion, compared with $818 million in the same period last year, according to fresh data released by the State Bank of Pakistan (SBP).
The increase represents a 39 % year-on-year surge in income outflows to foreign parent companies. Foreign investors repatriated $385.6 million in profit and dividends from Pakistan in October alone. The rise follows the easing of foreign exchange controls and a more stable rupee, which allowed foreign firms to resume long-delayed transfers of earnings.
The power sector remained the leading contributor, accounting for $342 million, up from $126 million last year. Financial businesses followed with $226.7 million, reflecting higher profitability in the banking sector and renewed foreign participation. The food, pharmaceutical, and oil and gas exploration sectors also recorded notable outflows of $76 million, $75 million, and $7.8 million, respectively.
The power sector was also the largest contributor, with profit and dividend payments of $155.6m in October, accounting for roughly 40% of the month’s total repatriation. Financial business followed at $42.8m, and pharmaceuticals and OTC products at $41.6m
The data showed smaller but steady outflows from industries such as tobacco and cigarettes ($66 million), petroleum refining ($46.6 million), and transport ($49.3 million). By contrast, repatriations from textile and fertiliser sectors remained minimal.
In country-wise repatriation, the United Kingdom topped the list with $258.2 million in profit and dividend repatriations, followed by China with $372.3 million and the United States with $77.1 million during July–October FY26. Other major recipients included the United Arab Emirates ($95.1 million), the Netherlands ($113.8 million), Germany ($37.1 million), and Switzerland ($35.4 million).
In monthly stats, China led the repatriation in October with $166.7m, representing around 43pc of total monthly outflows. The United Kingdom was next with $95.9m, followed by the United Arab Emirates at $46.6m.
Pakistan had seen restricted repatriations through FY23 and FY24 due to acute foreign exchange shortages. The resumption of smoother outflows this fiscal year reflects the government’s commitment under the IMF programme to normalise external payments, while also signalling stronger profit recoveries in sectors benefiting from a stable exchange rate and improved corporate performance.
