Islamabad, December 19, 2024: Foreign investors in Pakistan have significantly increased their repatriation of profits and dividends, with a 112% surge in the first five months of fiscal year 2025.
Data from the State Bank of Pakistan (SBP) revealed that these investors moved $1.129 billion out of the country between July and November of FY25, a substantial jump of $597 million compared to the $523 million recorded during the same period in the previous fiscal year (FY24). This dramatic rise is attributed to improved economic conditions and a boost in investor confidence.
A closer look at the data reveals that the bulk of repatriated funds came from returns on Foreign Direct Investment (FDI). During the first five months of fiscal year 2025 (July-November), foreign investors moved $1.074 billion out of Pakistan as FDI returns, a substantial 118% increase, or $582 million, compared to the $492 million recorded in the same period of fiscal year 2024.
Returns on Foreign Portfolio Investment (FPI) also saw a rise, reaching $54 million, up from $41 million the previous year. Analysts attribute this significant growth to improved economic fundamentals and stronger financial performance across key sectors, suggesting Pakistan’s growing potential as a profitable investment destination. This trend, experts believe, could further enhance the country’s ability to attract additional foreign capital.
A breakdown of the data by sector shows that the food sector accounted for the largest outflow of repatriated profits and dividends during the first five months of fiscal year 2025, totaling $247 million. This figure is almost four times higher than the $68.6 million recorded in the same period of fiscal year 2024.
The financial sector saw the second-highest level of repatriations, with $160 million, followed by the power sector, which recorded $157 million in outflows. In November 2024 alone, $322 million was repatriated, including $302 million in FDI returns and $20 million in FPI.