Banking and power sectors account for nearly 45% of total profit and dividend outflows, according to State Bank of Pakistan data.

KARACHI: Foreign investors repatriated $2.31 billion in profits and dividends from Pakistan during FY2025-26, up slightly from the previous fiscal year, reflecting continued earnings by overseas companies operating in the country, according to data released by the State Bank of Pakistan (SBP) on Monday.

The central bank’s figures show that total profit and dividend repatriation increased from $2.22 billion in FY2024-25 to $2.31 billion in FY2025-26, indicating that foreign businesses continued to generate returns on their investments despite broader economic challenges.

FDI-related profit outflows increase

Profit repatriation linked to foreign direct investment (FDI) rose modestly during the fiscal year.

According to the SBP, FDI-related profit and dividend outflows reached $2.20 billion in FY2025-26, compared with $2.10 billion in the preceding fiscal year.

In contrast, remittances associated with foreign portfolio investment (FPI) declined to $104 million, down from $115 million recorded a year earlier.

Banking and power sectors dominate outflows

The banking and power sectors remained the largest contributors to foreign profit repatriation during the fiscal year.

SBP data show that foreign investors remitted:

• $535 million from the banking sector;

• $508 million from the power sector;

• $200 million from the food sector;

• $160 million from the communication sector; and

• $117 million from the tobacco and cigarettes sector.

Combined, the banking and power sectors accounted for more than $1.04 billion, representing nearly 45 per cent of the total profit and dividend repatriated during FY2025-26.

Positive signal for foreign investors

The repatriation of profits and dividends is generally regarded as an indicator that foreign companies are generating earnings from their investments in Pakistan and are able to transfer those returns abroad in accordance with the country’s foreign exchange regulations.

The latest figures come as Pakistan continues efforts to attract additional foreign direct investment while maintaining external sector stability and strengthening its foreign exchange position.

Economic analysts note that allowing the timely repatriation of legitimate profits is essential for maintaining investor confidence, as it reassures international investors that they can realise returns on their investments without undue restrictions.

They add that sustained foreign investment inflows, coupled with a transparent foreign exchange regime, will remain critical to supporting Pakistan’s long-term economic growth and improving its investment climate.