Pakistan economy is once again giving foreign investors a reason to cash in, with profit repatriation rising sharply in July 2025. According to the State Bank of Pakistan (SBP), overseas companies sent home $244 million during the month, up 75 percent from $139 million recorded in July last year.
Economists say the jump is not just about stronger balance sheets. It reflects improving macroeconomic stability and renewed investor confidence. A survey by the Overseas Investors Chamber of Commerce and Industry (OICCI) revealed business confidence has turned positive for the first time in three years, climbing 16 points to plus 11 percent.
Similarly, Gallup Pakistan noted that private businesses are now more optimistic than at any time in the past four years, despite challenges such as inflation, high utility costs, and ongoing power shortages.
Part of this shift comes from government actions. In FY24, limits were placed on profit repatriation to protect foreign reserves. These restrictions were lifted last year, allowing firms to transfer earnings freely. SBP Governor Jameel Ahmed confirmed that by June 2025 all pending dues had been cleared, while reserves rose above $14 billion.
READ MORE: Foreign Investors Repatriate $1.7 Billion in Profits from Pakistan Over 9 Months
Almost all outflows came from Foreign Direct Investment (FDI), which surged 82 percent to $243.8 million compared to $134 million a year earlier. By contrast, Foreign Portfolio Investment (FPI) dropped to just $0.2 million from $5.3 million.
Analysts believe the figures highlight that while firms are taking profits abroad, they are also showing trust in the future of Pakistan economy.
