Karachi, March 19, 2025 – The State Bank of Pakistan (SBP) reported on Wednesday that profit and dividend repatriation from Pakistan witnessed a significant surge of 104% during the first eight months (July–February) of the fiscal year 2024-25.
This sharp increase reflects improved earnings for foreign companies operating in the country and a more accommodating foreign exchange policy.
According to the SBP, total profit and dividend repatriation by foreign firms reached $1.55 billion during the first eight months of the current fiscal year, compared to $760 million in the same period of the previous fiscal year. The substantial rise in profit repatriation highlights the increasing ability of multinational corporations to transfer their earnings abroad as Pakistan’s foreign exchange reserves stabilize.
Financial analysts attribute this surge in profit repatriation to multiple factors, including the enhanced profitability of foreign enterprises, favorable regulatory policies, and a more liberalized foreign exchange regime. The SBP’s decision to facilitate outflows has played a crucial role in streamlining the repatriation process for foreign investors.
The outflow of profit and dividends linked to foreign direct investment (FDI) soared by 111%, reaching $1.49 billion during the first eight months of the fiscal year, compared to $705 million in the same period last year. This indicates robust returns for foreign investors in various sectors, particularly in high-growth industries.
Additionally, the repatriation of profit and dividend from foreign portfolio investment (FPI) increased by 16.07%, totaling $65 million compared to $56 million in the same period of the last fiscal year. The rise in FPI repatriation reflects growing investor confidence and an improved regulatory environment, which has facilitated smoother capital movement.
Foreign companies engaged in food production, financial services, and oil and gas exploration were the leading contributors to profit repatriation during the period. Their ability to transfer earnings abroad underscores the profitability of these sectors and the SBP’s commitment to maintaining an investor-friendly economic framework.
The rise in profit repatriation underscores Pakistan’s evolving investment climate, signaling greater ease in conducting business for multinational corporations. Policymakers are expected to continue refining policies to attract and retain foreign investment while ensuring a balanced approach to capital outflows.