Islamabad, Apr 20, 2025: The repatriation of profits from Pakistan has witnessed a significant jump during the first nine months of the ongoing fiscal year (9MFY25), signaling renewed investor confidence and increased financial returns.
Based on the latest figures issued by the State Bank of Pakistan (SBP), overseas investors transferred a total of $1.708 billion from July to March FY25.
This shows a staggering 107% increase compared to $826 million repatriated in the same timeframe last year, highlighting a remarkable $882.7 million surge.
This notable rise in profit outflows underscores a strengthening trend in foreign direct investment returns, indicating that investors are seeing better performance and favorable returns on their stakes in Pakistan-based ventures.
Within just the month of March 2025, the repatriation of profits from Pakistan surged 140% year-on-year (YoY), reaching $157.9 million.
However, on a monthly comparison (MoM), there was a 32.3% decrease. Despite this monthly dip, the overall trend for the fiscal year remains upward.
Among the Foreign Investors various industries, the Power sector emerged as the leading contributor to this outflow, with foreign companies transferring $83.3 million in March alone.
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This marks an astonishing 1,802% increase over the corresponding period last year. Such a spike may be attributed to long-term energy projects maturing and yielding returns.
The financial services industry ranked second in terms of outflow, recording $21.6 million in profit repatriation.
The cement industry followed with $12.3 million, reflecting the continued demand for infrastructure and development-led growth.
Experts believe that such growing trends in repatriation reflect an improved macroeconomic environment and increasing trust of international investors in Pakistan’s regulatory and financial systems.
However, policymakers may need to ensure a balance between encouraging foreign investment and maintaining adequate foreign exchange reserves within the country.
As Pakistan moves ahead with its economic reforms, the soaring repatriation of profits from Pakistan serves as both a sign of economic activity and a call for sustainable foreign investment policies that benefit all stakeholders.
