Pakistan sends $1.83 billion abroad in profits while FDI declines

Pakistan continued to remit profits and dividends to foreign investors despite ongoing conflict in the region, with outflows rising 6.3% during the first nine months of the current fiscal year, official data showed.

Between July and March of fiscal year 2026, Pakistani companies sent $1.829 billion abroad in profits on foreign investments, up by $109 million compared with the same period last year.

Analysts said the figures largely reflect transactions initiated before the outbreak of the Gulf War, though some payments may have occurred after hostilities began, as the data was released 20 days into the conflict.

While profit repatriation increased, foreign direct investment (FDI) into Pakistan declined sharply. FDI fell 48% during the same July-March period, dropping to $804 million from $1.53 billion. F

inancial sector sources said uncertainty linked to the regional conflict, particularly in the Middle East, has dampened investor sentiment and may continue to weigh on inflows.

By country, the United Kingdom accounted for the largest share of profit outflows at $476 million, though that figure was down from $511 million a year earlier. China ranked second, with outflows surging to $439 million from $211 million last year, underscoring its position as Pakistan’s largest foreign investor.

Other major recipients included the United States at $160 million, the Netherlands at $158 million, and the United Arab Emirates at $128 million.

Sector data showed the power sector recorded the highest outflows at $428 million, up from $328 million a year earlier. The financial sector followed, with $405 million in profit repatriation compared with $214 million in the same period last year.

Separately, Pakistan’s total liquid foreign reserves stood at $20.52 billion as of April 10, according to the central bank. This included $15.08 billion held by the State Bank of Pakistan and $5.45 billion held by commercial banks.

The central bank said its reserves declined by $1.321 billion during the week ending April 10, largely due to the repayment of $1.426 billion in sovereign Eurobond obligations.