Foreign investors repatriate $1.56bn amid rising profits in Pakistan
foreign investors Pakistan
foreign investors Pakistan
(Web Desk): Foreign investors repatriated $1.56 billion in profits and dividends in H1 FY26, up 27% from last year, led by financial and power sectors.

Foreign investors repatriated $1.56 billion in profits and dividends during the first half of fiscal year 2026, marking a 27% increase from $1.23 billion in the same period last year, the State Bank of Pakistan (SBP) reported.

In December 2025 alone, total repatriation reached $89 million, with $81 million from Foreign Direct Investment (FDI) and $8 million from Foreign Portfolio Investment (FPI). Analysts said the increase reflects higher returns for foreign-owned businesses and smoother foreign exchange transfers compared to FY25.

FDI accounted for the bulk of outflows at 96%, totaling $1.5 billion, up 29% from $1.16 billion the previous year. In contrast, profit repatriation under FPI slightly declined to $60 million, despite improved equity market performance.

By sector, the financial services industry led the repatriation chart with $369 million, more than double last year’s $164 million. The power sector followed closely with $359 million, up from $178 million. Other contributing sectors included communications ($118 million), food ($67 million), and tobacco & cigarettes ($56 million).

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However, analysts highlighted a contrasting trend as FDI inflows into Pakistan fell sharply by 43%, totaling only $808.1 million in the first half of FY26. This indicates that while existing foreign investors are seeing higher returns, new investment remains sluggish, posing challenges for long-term economic growth.

The SBP emphasized that monitoring both profit repatriation and fresh investment flows is essential to balance foreign exchange stability and sustain investor confidence in Pakistan’s market.