PSX-listed companies pay record PKR 919 billion in dividends in 2025

Dividends paid by companies listed on the Pakistan Stock Exchange climbed to an all-time high of PKR 919 billion in 2025, marking the strongest payout in the country’s corporate history, according to market data compiled this week.

The dividend flow rose 20% from last year’s PKR 766 billion, reflecting stronger earnings across major sectors despite economic pressures including high inflation and elevated interest rates.

The latest figure continues a multi-year upward trend. In 2023, listed companies paid PKR 611 billion in cash dividends. Over a five-year period, total annual payouts have increased 84%, rising from PKR 500 billion to this year’s record level.

Analysts say the gains highlight improved profitability in banking, energy and fertilizer companies, along with a continued focus on returning cash to shareholders. Market observers also note that stronger balance sheets and better cash-flow management have enabled firms to maintain or raise dividends even as borrowing costs remain high.

The record distributions come as the PSX seeks to attract more investment and restore foreign participation, which has fluctuated in recent years. Dividends form a significant portion of investor returns in Pakistan’s equity market, where capital gains often lag global peers.

The surge in payouts is expected to support sentiment among both local and international investors, who view dividend strength as a key indicator of corporate health in an uncertain economic environment.

What’s driving the surge?

Exceptional corporate earnings

Multiple heavyweight sectors, particularly oil & gas, banking, and fertilizers, posted strong earnings during the period. Improved margins, stable demand, and favorable pricing environments strengthened their ability to distribute cash.

Shareholder-friendly policies

Companies have increasingly prioritized dividend consistency to maintain investor confidence, attract foreign inflows, and support valuations in a market where capital gains often lag global peers.

Higher cash flows despite economic pressures

Even in a high-inflation, high-interest rate environment, many corporates effectively managed costs and optimized working capital, enabling steady cash generation.

Market discipline and regulatory improvements

Better disclosure practices and strengthened corporate governance standards have encouraged companies to maintain stable dividend distributions, enhancing the attractiveness of the PSX.

For investors — both domestic and foreign — the record dividend payout signals a vital message: corporate Pakistan continues to deliver tangible returns, even when the economy faces headwinds.