Foreign investors repatriate $2.31 billion in profits from Pakistan in FY26

Foreign investors repatriated $2.305 billion in profits and dividends from Pakistan during fiscal year 2025-26 as improved foreign exchange reserves and dollar liquidity eased payment restrictions, according to data released by the State Bank of Pakistan (SBP). 

The total increased from $2.219 billion in FY25 and included $2.202 billion in payments on foreign direct investment and $103.7 million on foreign portfolio investment.

In June 2026, profit and dividend repatriation stood at $151.4 million, comprising $140.6 million in FDI earnings and $10.8 million in portfolio investment payments.

The increase followed an improvement in Pakistan’s external payments position after multinational companies faced delays in transferring earnings during the recent foreign exchange shortage.

Manufacturing generated the largest profit and dividend outflows in FY26, with foreign investors repatriating $564.3 million, down from $614.6 million a year earlier.

Financial and insurance activities followed with $537.4 million, up from $384.9 million in FY25, while outflows from electricity, gas, steam and air-conditioning supply increased to $496.5 million from $401.7 million.

Wholesale and retail trade accounted for $211.6 million in repatriated earnings, followed by information and communication at $166.9 million and transportation and storage at $162.1 million.

Mining and quarrying generated outflows of $124.6 million, while other service activities and administrative and support services accounted for $13.9 million and $12.8 million, respectively.

Foreign investors also repatriated $9.3 million from professional, scientific and technical activities, $3.6 million from accommodation and food services and $2 million from construction.

Agriculture, forestry and fishing; water supply, sewerage, waste management and remediation; and human health and social work activities each accounted for $0.1 million.

No profit or dividend repatriation was recorded from real estate, education, or arts, entertainment and recreation during FY26.

The United Kingdom remained the largest destination for repatriated profits and dividends, receiving $621.2 million, followed by China with $486.5 million.

The United States received $191.4 million, the Netherlands $190.6 million and the United Arab Emirates $150.3 million.

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

Repatriation amounted to $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 increase indicates that foreign companies have greater access to dollars for transferring legitimate earnings. However, stronger inflows of fresh foreign direct investment will be needed to offset rising profit outflows, expand productive capacity and support Pakistan’s external account.