Repatriation of profits and dividends on foreign investments in Pakistan more than doubled in the first two months of FY26, exceeding inflows of foreign direct investment (FDI), according to State Bank data released on Friday.
Outflows reached $593 million during July–August, up 115% from $275 million in the same period last year. In comparison, FDI stood at $364 million, marking a 22% year-on-year decline. This left repatriated profits $229 million higher than fresh FDI inflows.
The surge in outflows comes as global lenders like the IMF and World Bank press Pakistan to allow freer capital movement. Analysts warn the trend could persist, further burdening the external account.
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China emerged as the largest recipient, with profit repatriation surging to $205.6 million from just $20.5 million last year. The UK followed with $96.5 million, the Netherlands $87 million, the UAE $45 million, and the US $42 million.
