SBP data shows rise in profit outflows, led by UK, China and banking sector earnings
Foreign investors repatriated more than $2 billion in profits and dividends from Pakistan during the first ten months of fiscal year 2025-26, according to data released by the State Bank of Pakistan on Monday.
The repatriation of profits and dividends increased by 8.69% compared with $1.84 billion in the same period of the previous fiscal year, highlighting continued outflows from foreign-invested sectors despite economic stabilisation efforts.
FDI-linked outflows drive majority of repatriation
Profit repatriation related to foreign direct investment (FDI) rose 9.71% to $1.92 billion during July–April FY26, up from $1.75 billion a year earlier.
Outflows from portfolio investments in the capital market, however, declined by 9% to $81 million, reflecting relatively lower withdrawals from equity holdings.
UK, China lead profit remittances
Country-wise data showed the highest repatriation volumes came from investors based in the United Kingdom at $556 million, followed by China at $440 million, the Netherlands at $175 million and the United States at $169 million.
Banking and power sectors dominate outflows
Sectoral breakdown revealed that banks remained the largest source of profit repatriation at $477 million, followed by the power sector at $433 million. The food sector accounted for $172 million, while the communication sector recorded $148 million.
Economists say sustained profit repatriation reflects both the maturity of foreign investments in Pakistan and ongoing pressures on external account management, even as inflows remain uneven across sectors.