Profit repatriation from Pakistan rises 16% to $2.09 billion in FY25's 11 months

Repatriation of profits and dividends from foreign investments in Pakistan rose by 16% in the first 11 months of the current fiscal year (FY25), signaling improved economic conditions and investor confidence.

Cumulative repatriation reached $2.09 billion between July 2024 and May 2025, up from $1.69 billion in the same period last fiscal year, according to central bank data.

Analysts attribute the increase to a more stable foreign exchange regime and easing of regulatory restrictions.

In May alone, profit outflows surged to $264 million, a 117% increase from April but a 71% decline compared to May 2024. The month-on-month jump reflects improved external account conditions, allowing foreign businesses to transfer earnings more freely.

The power sector led repatriations with $396.25 million, followed by financial businesses ($364.65 million) and food ($293.11 million). Oil and gas exploration firms sent $145.67 million abroad, while communications companies repatriated $129.54 million.

The United Kingdom topped profit outflows at $605.27 million, up from $455.68 million last year. In May, U.K. investors withdrew $67.82 million. China followed with $290.58 million, while the U.S. ranked third at $218.46 million. The Netherlands repatriated $177.98 million.

Despite higher profit withdrawals, foreign direct investment (FDI) fell 36.5% year-over-year in May to $193.9 million. For the 11-month period, total FDI dropped 7.6% to $1.97 billion.

Last year, Pakistan had imposed temporary restrictions on profit repatriation to manage foreign exchange reserves. With those measures lifted, outflows have rebounded.