Foreign profit repatriation surges 104 per cent in first eight months of FY25

SBP held forex reserves
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Foreign investors significantly increased their repatriation of profits and dividends in the first eight months of FY25, reaching $1.55 billion. This marks a 104 per cent year-on-year (YoY) rise compared to $760.19 million during the same period last year, according to the latest data from the State Bank of Pakistan (SBP).

A major portion of this outflow came from foreign direct investments (FDI), with companies sending home $1.49 billion in profits, a staggering 110.88 per cent increase from the $704.69 million recorded in the same timeframe of FY24. Payments related to portfolio investments amounted to $64.73 million, reflecting a 16.64 per cent growth from $55.49 million in the previous year.

In February 2025 alone, foreign firms repatriated $233.29 million, further driving the cumulative outflow higher.

Several key sectors were responsible for the bulk of the repatriations. The food sector led the pack, sending $290.59 million abroad. It was followed by the power sector, which repatriated $233.47 million, while the financial business sector saw a significant increase, sending home $192.6 million. The oil and gas exploration sector contributed $109.09 million to the total, and the communications sector added $108.61 million.

Looking at the data by country, investors from the UK were the largest beneficiaries, repatriating $496.59 million in profits during the first eight months of FY25. This is a significant rise from the $107.99 million remitted in the same period last year. In February alone, payments to UK investors totalled $62.56 million.

The US followed, with American investors repatriating $176.61 million, compared to $47.37 million during the previous year. The Netherlands ranked third, with $158.88 million sent abroad, a substantial increase from the $28.63 million remitted last year. Meanwhile, investors from the UAE repatriated $145.25 million during the review period.

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