Pakistan paid $2.3bn in foreign profit repatriation in FY26, exceeding net FDI
Pakistan remitted USD 2.305 billion in profits and dividends to foreign investors during FY2025-26, exceeding net foreign direct investment inflows of USD 1.64 billion by roughly USD 665 million, the National Assembly was informed on Friday.
In a written reply to Dr Mahreen Razzaq Bhutto, the minister in charge of the Special Investment Facilitation Council Division said repatriation on direct investment came to USD 2.202 billion, with a further USD 103.7 million remitted on portfolio investments. The combined outflows were nearly 41 percent higher than net FDI inflows for the year.
Manufacturing accounted for the largest share of profit and dividend repatriation at USD 564.3 million, followed by financial and insurance activities at USD 537.4 million and electricity, gas, steam and air-conditioning supply at USD 496.5 million. Wholesale and retail trade accounted for USD 211.6 million, information and communication USD 166.9 million, transportation and storage USD 162.1 million, and mining and quarrying USD 124.6 million. The seven sectors together accounted for more than USD 2.26 billion, and the sector figures cover payments on both direct and portfolio investments rather than direct-investment outflows alone.
The government cautioned against directly comparing annual net FDI with profit repatriation, saying the two measure different things: net FDI is inward direct investment after relevant direct-investment outflows, while profits remitted in a given year may arise from investments made over several years. It also said improved foreign-exchange liquidity had allowed previously delayed payments to be cleared. It cited gross FDI inflows of USD 4.268 billion in FY2024-25 and USD 3.603 billion during July-April FY2025-26, figures that cover different periods and measure gross rather than net inflows.
The reply pointed to the Pakistan Investment Policy 2023, the SIFC's investment-facilitation role, investor support through the Board of Investment and the development of Special Economic Zones as measures to attract diversified, export-oriented investment and encourage reinvestment. It did not establish whether the SIFC had separately assessed the impact of FY2025-26 profit repatriation on foreign-exchange reserves and the current account, saying confirmation and any quantified assessment should be sought from the State Bank of Pakistan and the Finance Division.
