Islamabad, Dec 19: Foreign investors in Pakistan have significantly increased their repatriation of profits and dividends, with a 112% rise in the first five months of fiscal year 2025. According to the State Bank of Pakistan (SBP), investors transferred $1.129 billion out of the country from July to November FY25, marking an increase of $597 million compared to the $523 million recorded during the same period in FY24.
This sharp rise is attributed to better economic conditions and heightened investor confidence.
A closer analysis of the data shows that most of the repatriated funds stemmed from Foreign Direct Investment (FDI) returns. In the first five months of FY25, foreign investors transferred $1.074 billion out of Pakistan as FDI returns, reflecting a 118% increase or $582 million compared to $492 million in FY24.
Foreign Portfolio Investment (FPI) returns also grew, reaching $54 million, up from $41 million in the previous year.
Experts attribute this growth to improved economic fundamentals and stronger financial performance across key sectors, which bolstered Pakistan’s appeal as an attractive investment destination. This trend may further enhance Pakistan’s ability to attract foreign capital.
A sector-wise breakdown reveals that the food sector had the largest outflow of repatriated profits, totaling $247 million, nearly four times the $68.6 million recorded in FY24.
The financial sector ranked second with $160 million in repatriations, followed by the power sector, which recorded $157 million in outflows. In November 2024 alone, $322 million was repatriated, including $302 million in FDI returns and $20 million in FPI.
