Foreign companies operating in Pakistan sent home more than USD 1.6 billion in profits and dividends during the first seven months of the current fiscal year, according to new figures from the State Bank of Pakistan.
The central bank’s data shows that total repatriation reached USD 1.678 billion between July and January of FY26. This is up from USD 1.329 billion in the same period last year. The increase of USD 349 million reflects a rise of 26 percent in returns to foreign investors.
Analysts link the higher outflows to stronger business conditions. Industrial and economic activity has improved in recent months, helping companies post better earnings. At the same time, there were no government restrictions on sending profits and dividends abroad, which made payments smoother.
Most of the increase came from foreign direct investment. Returns on FDI stood at USD 1.618 billion during July to January, compared with USD 1.265 billion a year earlier. This marks a growth of 28 percent, or USD 353 million. FDI made up around 96 percent of total repatriation.
In contrast, payments linked to foreign portfolio investment fell slightly. Investors repatriated USD 60 million under portfolio investment in the seven month period, down from USD 64.1 million last year. This suggests a softer trend in portfolio flows, despite improved activity in the equity market.
In January alone, foreign firms repatriated about USD 118.7 million. Almost the entire amount came from FDI returns, while portfolio investment recorded only a small outflow.
Despite the higher outflows and ongoing debt repayments, the central bank has continued to build foreign exchange reserves. These reached USD 16.2 billion in the second week of February. If the current pace continues, total repatriation is expected to cross USD 2 billion by the end of the fiscal year.
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