In a strong sign of recovering investor confidence, foreign investors repatriated $751.7 million in profits and dividends during the first quarter of FY26 (July–September 2025) — an 86% year-on-year increase compared to $404.5 million in the same period last year, according to the State Bank of Pakistan (SBP).
Experts attributed this surge to improved earnings of foreign companies and easing restrictions on foreign exchange outflows, which were previously imposed to stabilize Pakistan’s reserves. Despite a challenging macroeconomic environment, foreign investors have shown long-term commitment and resilience, contributing significantly to key financial indicators.
According to a recent report by the Overseas Investors Chamber of Commerce and Industry (OICCI), member companies posted a 34% growth in pre-tax profits, reaching Rs1.2 trillion in 2024, with total business turnover exceeding Rs11 trillion. These companies collectively contributed Rs2.7 trillion in taxes and duties to the national exchequer.
A detailed breakdown shows that most of the repatriated funds were returns on Foreign Direct Investment (FDI). Profit and dividend outflows from FDI rose by 92.5%, reaching $734 million, compared to $382 million in the same period last fiscal year. In contrast, outflows related to Foreign Portfolio Investment (FPI) declined to $17 million, down from $23 million last year.
China emerged as the largest recipient of profit repatriation during the quarter, withdrawing $205 million, followed by the United Kingdom ($162 million), the Netherlands ($92 million), and the United States ($69 million).
The SBP’s decision to lift all restrictions on profit and dividend remittances has been a key factor behind the sharp increase, supported by improved foreign exchange inflows and a stronger external account position.
On a monthly basis, foreign investors repatriated an average of $159 million, including $143.2 million from FDI and $15.8 million from FPI sources.
The banking and financial services sector remained a dominant contributor, accounting for 73% of total assets among OICCI member companies, reflecting ongoing profitability and expansion within the financial industry.
Overall, the data underscores Pakistan’s improving business climate, driven by better corporate performance, enhanced investor facilitation, and a gradual normalization of foreign exchange policies.
