Foreign firms take home $2b in profits

Foreign investors repatriated more than $2 billion in profits and dividends from Pakistan during July-April FY26, up 8.66% over the same period last year, as improving foreign exchange availability and stronger corporate earnings enabled multinational companies to transfer higher returns to their parent firms abroad.

According to data released by the State Bank of Pakistan (SBP) on Thursday, total profit and dividend repatriation reached $2.0007 billion during the first 10 months of FY26, compared with $1.8413 billion in the corresponding period of FY25. Of the total, $1.92 billion was repatriated under foreign direct investment (FDI), while $80.7 million was transferred under foreign portfolio investment (FPI).

Investors from the United Kingdom remained the largest recipientsof profit and dividend payments from Pakistan, receiving $556.4 million – more than a quarter of total repatriations – reflecting the sizeable presence of British-linked multinational corporations in Pakistan's energy, consumer goods, financial and telecom sectors.

A significant jump was recorded in payments to Chinese investors, which surged to $439.5 million from $222.8 million a year earlier, underscoring the growing maturity of Chinese investments, particularly in power generation and infrastructure projects under the China-Pakistan Economic Corridor (CPEC). China emerged as the second-largest destination for profit remittances after the UK.

Among European economies, the Netherlands received $175.5 million, while US investors repatriated $169 million. The United Arab Emirates (UAE) received $130.4 million, making it one of the largest destinations for profit outflows from Pakistan. Payments to Switzerland nearly doubled to $94 million, indicating stronger earnings by Swiss-linked companies.

The Gulf region featured prominently. Besides the UAE, Kuwait received $60.3 million, Bahrain $19.9 million, Saudi Arabia $9.2 million, and Lebanon $7.5 million, reflecting their long-standing investment footprint in Pakistan's banking, energy and industrial sectors.

Across East Asia, Japan received $43.5 million, South Korea $43.3 million, Hong Kong $31.9 million, Singapore $18.8 million and Malaysia $14.4 million. European countries including Germany ($39 million), Türkiye ($22.6 million), Denmark ($14.9 million), Italy ($4.4 million), Luxembourg ($3.9 million), Austria ($0.5 million) and Ireland ($0.7 million) also received payments.

In April 2026 alone, foreign investors repatriated $172 million, with the largest monthly transfers to the UK ($80.8 million), Switzerland ($32.6 million), the Netherlands ($17.5 million), Bahrain ($7.4 million) and the US ($8.1 million).

Analysts said the increase reflects both improved profitability of multinational firms and the gradual normalisation of Pakistan's external sector. During the previous two years, several foreign companies had faced delays in remitting profits because of foreign exchange constraints. The latest figures suggest those restrictions have eased considerably, allowing firms to transfer earnings more freely.

Sector-wise, repatriation during July-May FY26 was concentrated in key sectors. The power sector recorded the largest outflows at $478.2 million, primarily driven by coal ($352.9 million), hydel ($92.4 million) and thermal projects ($32.9 million). Financial business firms repatriated $523.2 million, making it the single largest sectoral contributor. Significant remittances were also observed in communications ($158.5 million), food ($175.3 million), telecommunications ($137.2 million), transport ($98.8 million), pharmaceuticals and over-the-counter products ($94.3 million), beverages ($59.6 million), oil and gas exploration ($51.2 million), petroleum refining ($51.8 million), cement ($48.7 million) and chemicals ($42.6 million).

While rising profit repatriation increases pressure on Pakistan's balance of payments, the ability of foreign companies to repatriate profits remains a key benchmark for international investors assessing the country's investment climate. The latest data point to improving business conditions even as policymakers seek to attract fresh foreign direct investment into export-oriented and productive sectors of the economy.