Foreign investors repatriated more than $2 billion in profits and dividends from Pakistan during the first 10 months of fiscal year 2025-26, up 8.7 percent from a year earlier, as improved foreign exchange liquidity allowed multinational companies to transfer earnings more freely.

According to data released by the State Bank of Pakistan, profit and dividend repatriation stood at $2.0007 billion during July-April FY26, compared with $1.8413 billion in the same period last year.

Of the total amount, $1.92 billion was remitted under foreign direct investment, while $80.7 million was transferred under foreign portfolio investment.

The United Kingdom remained the largest destination for profit outflows, receiving $556.4 million, followed by China with $439.5 million, nearly double the amount repatriated during the same period last year.

Investors from the Netherlands received $175.5 million, while companies from the United States and the United Arab Emirates repatriated $169 million and $130.4 million, respectively.

Sector-wise, financial businesses recorded the largest outflows at $523.2 million, followed by the power sector at $478.2 million, largely driven by coal-fired projects.

Significant profit remittances were also recorded in the food, communications, pharmaceuticals, transport, petroleum refining, cement and chemical sectors.

The increase reflects both stronger corporate profitability and the easing of foreign exchange restrictions that had delayed profit repatriation over the past two years.

While higher outflows add pressure on Pakistan’s external account, the ability of foreign companies to repatriate profits is generally seen as an important signal of investor confidence in the country’s business environment.