Foreign investors repatriated $2.305 billion in profits and dividends from Pakistan during FY2025-26, marking a 3.87% increase from $2.219 billion in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP).

Profit repatriation linked to foreign direct investment (FDI) rose to $2.201 billion during July-June FY26, compared with $2.104 billion a year earlier. In contrast, outflows associated with foreign portfolio investment declined to $103.7 million from $115 million in FY25.

The increase in repatriation reflects improved access to foreign exchange for multinational companies following years of restrictions amid dollar shortages. Analysts view the normalisation of profit transfers as a positive signal for investor confidence, demonstrating greater predictability in moving earnings out of the country.

However, concerns remain over the balance between fresh foreign investment and profit outflows. In the first 11 months of FY26, profit repatriation of $2.15 billion exceeded net FDI by around 32%, highlighting the need to attract stronger inflows of new foreign capital.

Pakistan recorded a current account deficit of $139 million in FY26, compared with a $1.8 billion surplus a year earlier, amid a widening trade imbalance. Meanwhile, the SBP's foreign exchange reserves have strengthened significantly, rising from around $3 billion in 2023 to $17.2 billion as of July 10, 2026.