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Record Profits Repatriation on Foreign Investments Witnessed in Pakistan for Q1-FY25

sbp reports surge in repatriation on foreign investments in Pakistan q1fy25

ISLAMABAD: The profits repatriation on foreign investments in Pakistan surged 85% during the first quarter of the current fiscal year, according to recent data from the State Bank of Pakistan. Foreign investors repatriated profits and dividends $393.4 million between July and September this year, compared to $213 million for the same period a year ago. This is an increase of $180 million, which suggests that foreign investors have become increasingly confident due to the gradual improvement in the economic growth of Pakistan.

Analysts attribute this to a continued improvement in Pakistan’s external accounts, adding that foreign businesses operating in the country have actively repatriated earnings since the beginning of FY25. They add that the higher outflows show Pakistan’s gradual economic recovery. The government had temporarily halted the repatriation of profits last year with the aim of administrating external liabilities and propping up foreign exchange reserves. This year’s figures suggest that the government has relaxed controls to allow foreign firms to repatriate their earnings overseas more easily.

Profits Repatriation from Foreign Investments – A symbol of Economic Growth
  • Record Profit Repatriation: Foreign investors in Pakistan repatriated $393.4 million in Q1 FY25, marking an 85% increase over the same period last year, reflecting growing investor confidence
  • Sectoral and Country-Wise Trends: The financial sector led repatriation outflows at $88.2 million, with the United Kingdom topping the list of countries with $145.5 million in profit transfers.
  • Improved Economic Conditions: The increase in foreign exchange reserves to $11.04 billion and relaxed government controls on profit repatriation are helping attract foreign investment and stabilize Pakistan’s economy.

SBP Statistics on Profits Repatriation on Foreign Investments in Pakistan in Q1FY25

SBP Statistics on Profits Repatriation on Foreign Investments in Pakistan in Q1FY25

Break-up of Profits Repatriation on Foreign Investments in Pakistan in FY25

In Q1, FDI became the single largest share of profit repatriation, which was up 90% compared with the same period last year. The repatriation from FDI stood at $370 million against $195 million in the same period during the last fiscal year. The repatriation of US dollar proceeds from FPIs also reached $23 million, up from $18 million during the same period last year.

September 2025 had lower repatriation figures compared to this general increase. Foreign companies sent home $119 million of profits and dividends, down from $135.6 million in August. Of this total, $102 million was associated with returns on FDI, while $16.3 million was attributed to FPI.

The FDI trends in Pakistan can be read here.

profits repatriation on foreign investments

Sectoral and Country-Wise Trends

The highest of the Profits Repatriation on Foreign Investments in Pakistan was the repatriation outflow of $88.2 million, more than double the amount reported at $37 million a year earlier, came from the financial sector, trailed by the Tobacco industry with $68 mln. The transportation sector saw $47.4 mln in repatriated earnings in the first three months of FY25.

Geographically, the United Kingdom topped profit repatriation, with outflows reaching $145.5 million, followed by the United States with $56.1 million and the United Arab Emirates at $39.3 million.

Increased Reserves Boost Investor Confidence The total foreign exchange reserves with SBP, therefore, have reached $11.04 billion as of October 18, 2024, on the back of strong foreign inflows. At this level, they are enough for more than two weeks of imports, and there is enough financial stability that the SBP has been able to take back some of the earlier restrictions on repatriations.

foreign investment pakistan 2024

This is presumably helping increase foreign investment and easing the flow of capital out of Pakistan to home countries. This recent increase in repatriation is a good enough reflection not only of how foreign investors are confident in the economic outlook in Pakistan but also of how the government is pursuing a foreign exchange policy that is balanced and coupled with making conditions ripe for investment.

Pakistan’s external accounts improvement has been driven by targeted fiscal policies, increased remittances, and a narrowing trade deficit, paving the way for greater economic stability. A positive growth is seen in financial sector investment trends Pakistan.

Conclusion

The increase in profit repatriation by foreign investors highlights growing confidence in Pakistan’s economic recovery and stability. With foreign exchange reserves strengthening and the government easing controls on repatriation, foreign investors have capitalized on the opportunity to transfer earnings, particularly in sectors like finance and tobacco. This shift reflects a balanced approach from the government, aiming to sustain investor interest while supporting economic growth. As Pakistan continues to create a more conducive environment for foreign investment, these trends could foster long-term economic stability and make the country an attractive, reliable investment destination.

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