Islamabad, Feb 20: The repatriation of profits and dividends from foreign investments in Pakistan saw a remarkable surge, reaching $1.32 billion during the first seven months of the fiscal year 2024-25. This marks a substantial 90% increase compared to $694.3 million recorded in the same period of the previous fiscal year, as per data released by the State Bank of Pakistan (SBP).
In January 2025 alone, foreign investors repatriated $102.9 million, reflecting a 20% rise from the previous month. However, this figure represented a 19% year-on-year decline from the $126.6 million recorded in January 2024.
Among the major contributors to this outflow, the food sector led with a massive $263 million in profit and dividend repatriation, showing an astounding 209% increase compared to the previous year. The power sector followed with $182.8 million in repatriated earnings, highlighting its significance in attracting foreign investments. Additionally, the oil and gas exploration sector exhibited a dramatic rise, with outflows soaring 23 times higher, reaching $108.6 million during the reviewed period.
The sharp increase in profit repatriation underscores renewed investor confidence in Pakistan’s economy, despite global economic uncertainties. A combination of policy reforms improved foreign direct investment (FDI) inflows, and currency stabilization has contributed to this trend.
Read More:
World Bank Directors Review $40 Billion Investment Plan for Pakistan
While higher repatriation indicates robust foreign participation in Pakistan’s business landscape, it also emphasizes the need for sustainable economic strategies to balance foreign exchange reserves and investment retention. Policymakers may consider incentives to encourage reinvestment, ensuring long-term economic benefits.
As Pakistan continues to attract global investors, maintaining a favorable business environment will be crucial in sustaining these capital flows. Moving forward, a stable economic framework, investor-friendly regulations, and sector-specific growth policies will be key to harnessing the full potential of foreign investments