Business

Profit Repatriation Surges by 85% in First 3 Months of Fiscal Year

Repatriation of profits and dividends by foreign investors in Pakistan reached $159 million in September 2025, marking a 22.5% year-on-year increase, according to data compiled by Arif Habib Limited.

The first quarter of FY26 saw a significant jump in total repatriation, with foreign investors sending $751.7 million abroad, an 85.8% increase from $404.5 million in the same period last year.

However, the figure was down 54.4% compared to August 2025, when outflows stood at $348.7 million.

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Sector-wise, the financial business sector led the outflows in September, with $48.5 million repatriated, up 69% year-on-year. The food sector followed, with $26.5 million, representing a massive 278% increase from the previous year. The power sector also saw notable outflows of $16.4 million, up 5% year-on-year.

Other sectors with significant repatriation included tobacco and cigarettes ($24.5 million), pharmaceuticals and OTC products ($10.4 million, up over 433 times year-on-year), and beverages ($13.3 million). Meanwhile, the communications sector saw a 30% drop in outflows to $1.5 million.

The monthly trend chart shows that repatriation activity peaked in May 2024 at $918 million, with another high in June at $415 million. Since then, monthly outflows have moderated, with September’s figure representing a return to more typical levels.

Analysts say the sharp year-on-year increase in repatriation during the first quarter reflects improved macroeconomic stability and greater confidence among foreign investors in moving their profits abroad.

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Business Desk