Karachi, May 19, 2025 – The repatriation of profit and dividends by foreign investors from Pakistan surged by an impressive 108% during the first ten months (July–April) of the fiscal year 2024–25, according to the latest data released by the State Bank of Pakistan (SBP) on Monday.
Foreign investors repatriated a total of $1.84 billion in profit and dividends between July 2024 and April 2025, more than doubling the $883 million sent out during the same period of the previous fiscal year. This significant rise underscores improved macroeconomic conditions and greater investor confidence in Pakistan’s foreign exchange management policies.
Analysts attribute this sharp increase to strong corporate earnings reported by multinational companies operating in Pakistan, along with a more flexible and transparent foreign exchange policy adopted by the government. These factors have encouraged foreign companies to repatriate their profits without delays or complications.
A few years ago, the SBP had imposed restrictions on profit repatriation due to a severe shortage of foreign exchange reserves. However, the current economic landscape is far more stable, with the central bank now holding sufficient reserves to accommodate external payment obligations, including profit repatriation.
During the July–April period of FY25, repatriation of profits from foreign direct investment (FDI) soared to $1.75 billion, compared to $807 million in the same period of FY24—representing a substantial recovery. This suggests that FDI ventures in Pakistan have become more profitable and that foreign investors are regaining trust in the country’s regulatory and economic framework.
Similarly, profit repatriation from portfolio investment also rose modestly, increasing to $89 million from $75 million in the previous fiscal year’s corresponding period. Though smaller in volume, this uptick reflects growing confidence in Pakistan’s capital markets.
Overall, the rise in profit repatriation highlights improved financial health of foreign-owned businesses in Pakistan and signals a shift toward a more investor-friendly environment. As Pakistan continues to stabilize its economy, further easing of regulations could make repatriation even smoother and bolster foreign investment in the long term.