KARACHI – Foreign firms operating in Pakistan repatriated a massive $752 million in profits and dividends during the first quarter of fiscal year 2025–26, marking an 86% surge compared to the same period last year.
Data from the State Bank of Pakistan showed that most of the outflows came from foreign direct investment (FDI) ventures, which sent back around $735 million, up from $382 million a year earlier. Portfolio investment outflows, however, remained comparatively modest.
The power sector led the list, remitting nearly $186 million, a sharp rise from just $50 million last year. The financial sector followed closely with $182 million, nearly double the previous year’s figure, while telecommunication firms transferred $68 million abroad, compared to $7.5 million during the same period in 2024.
Country-wise, China topped the repatriation chart with over $205 million, followed by the Netherlands with $92 million. Analysts say the sharp uptick in profit outflows reflects both improved corporate profitability and the gradual easing of foreign exchange restrictions.
However, the spike comes as Pakistan continues to manage a delicate external financing situation, balancing investor confidence with the need to stabilise foreign reserves.
This story has been reported by PakTribune. All rights reserved.