Profit repatriation by foreign investors up 27% in 1H FY26

Repatriation of profits and dividends by foreign investors rose sharply 27 percent in the first half of the current fiscal year (FY26), highlighting stronger earnings outflows from Pakistan.

The State Bank of Pakistan (SBP) on Tuesday reported that foreign companies operating in the country repatriated USD 1.559 billion in profits and dividends during July-December of FY26 compared to USD 1.226 billion in the same period last year (FY25). The increase translates into an additional USD 333 million sent abroad as returns on both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).

Analysts said that the higher repatriation of profit and dividend reflects improved profitability of some foreign-owned businesses as well as relatively smoother transfer of the foreign exchange compared to the previous year.

The detailed analysis revealed that returns on FDI accounted for the bulk of the outflows, as multinational companies transferred profits generated from sectors such as power, telecommunications, and financial services. However, repatriation under the portfolio investment, indicating witnessed downward trend despite improved performance of the equity market.