KARACHI, April 20, 2026 – New data released by the State Bank of Pakistan (SBP) on Monday reveals a significant uptick in the movement of international capital. Foreign investors repatriated a total of $1.83 billion in profits and dividends during the first nine months (July to March) of the 2025-26 fiscal year.
This figure represents a 6.40% increase compared to the $1.72 billion recorded during the same period in the previous fiscal year. The steady rise in repatriated earnings is often viewed by economists as a double-edged sword; while it highlights the profitability of local ventures for international players, it also puts pressure on the country’s foreign exchange reserves.
FDI and Portfolio Investment Trends
The lion’s share of the outflow was attributed to Foreign Direct Investment (FDI). Profit repatriation under FDI reached $1.76 billion, marking a 6.70% rise from the $1.65 billion seen last year. Despite this outflow, the broader investment climate showed resilience, as FDI inflows into Pakistan surged to $1.86 billion during the current nine-month period, up from $1.35 billion in the corresponding months of the prior year.
In contrast, the portfolio investment sector saw a cooling trend. Profit repatriation for portfolio investments declined by 7%, falling to $66 million. More notably, the total outflow of portfolio investment significantly narrowed to $269 million, compared to a much larger exit of $550 million in the previous fiscal year, suggesting a stabilization in market sentiment.
Leading Countries in Profit Outflow
The SBP data also provided a geographical breakdown of the earnings being sent abroad:
• United Kingdom: Led the list with $476 million in repatriated profits.
• China: Followed closely, repatriating $439 million during the period under review.
• United States: Accounted for $161 million in profit outflows.
As Pakistan continues to refine its economic policies in 2026, the balance between attracting fresh capital and managing the repatriation of earnings remains a focal point for the federal government and the central bank.