Foreign companies operating in Pakistan repatriated $752 million in profits and dividends during the first quarter of the current fiscal year (FY26), marking an 86 percent increase compared to $404.5 million in the same period last year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
The sharp surge reflects a policy shift by the government, which has eased restrictions on foreign exchange outflows after nearly three years of tight controls. The move comes amid IMF recommendations for Pakistan to liberalize its foreign exchange regime and ensure smooth repatriation for foreign investors.
While the country recorded a $110 million current account surplus in September, broader economic indicators remain under strain, with the trade deficit widening to $9 billion in the first quarter. The government is simultaneously negotiating rollovers of major external debt repayments due later in FY26.
Among countries, China emerged as the largest recipient of profit outflows, receiving $205.6 million in July–September, up sharply from $34.3 million a year earlier. However, Chinese investment in Pakistan fell to $188 million, down from $502.6 million, indicating a slowdown in new foreign direct investment (FDI) despite higher repatriations.
Other significant recipients included the United Kingdom ($162.2m), the United States ($68m), and the Netherlands ($92.3m), with the latter showing a steep rise from just $6.7 million in the same period last year.
By sector, the power sector led with $186 million in repatriations, followed by the financial sector — primarily banks — at $182 million. The telecommunications sector repatriated $68 million, while the food sector followed with $62 million.
With SBP reserves stable at $14.4 billion and IMF confidence improving, analysts expect the government to maintain a more relaxed stance on profit repatriation for the remainder of FY26, aiming to reassure foreign investors and attract new inflows.
