Foreign profit repatriation rises 8.66% to $2 billion in July-April

Foreign investors repatriated $2.0007 billion in profits and dividends from Pakistan during July-April FY26, up 8.66% from $1.8413 billion in the same period last year, according to data released by the State Bank of Pakistan on Thursday.

Of the total amount, $1.92 billion was repatriated under foreign direct investment, while $80.7 million was transferred under foreign portfolio investment.

The United Kingdom remained the largest recipient of profit and dividend payments from Pakistan, receiving $556.4 million during the first 10 months of FY26. The amount accounted for more than a quarter of total repatriations.

China was the second-largest destination, with payments rising to $439.5 million from $222.8 million a year earlier.

Among other major countries, the Netherlands received $175.5 million, while investors from the United States repatriated $169 million. The United Arab Emirates received $130.4 million.

Payments to Switzerland nearly doubled to $94 million.

In the Gulf region, Kuwait received $60.3 million, Bahrain $19.9 million, Saudi Arabia $9.2 million and Lebanon $7.5 million.

Among East Asian economies, 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 investors also repatriated profits, with Germany receiving $39 million, Türkiye $22.6 million, Denmark $14.9 million, Italy $4.4 million, Luxembourg $3.9 million, Ireland $0.7 million and Austria $0.5 million.

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

Sector-wise, financial businesses recorded the highest repatriation during July-April FY26 at $523.2 million.

The power sector followed with outflows of $478.2 million, led by coal-based projects at $352.9 million, hydel projects at $92.4 million and thermal projects at $32.9 million.

Other major sectors included food at $175.3 million, communications at $158.5 million, telecommunications at $137.2 million, transport at $98.8 million, pharmaceuticals and over-the-counter products at $94.3 million, beverages at $59.6 million, petroleum refining at $51.8 million, oil and gas exploration at $51.2 million, cement at $48.7 million and chemicals at $42.6 million.

Analysts said the increase reflected improved earnings of multinational companies and easier access to foreign exchange after delays in profit remittances during the previous two years.

While higher repatriation adds pressure on the balance of payments, the ability of foreign companies to transfer earnings is viewed as an indicator of the investment climate as Pakistan seeks fresh foreign direct investment in productive and export-oriented sectors.