Foreign Investors Took Out $1.5 Billion From Pakistan in 6 Months

Foreign investors repatriated profits and dividends worth $88.8 million in December 2025, taking total outflows to $1.51 billion during the first half of FY26, according to data released by the State Bank of Pakistan (SBP) and analysis by Arif Habib Limited (AHL).

While December’s repatriation was 3.6 percent higher year-on-year, it dropped sharply by 68.4 percent on a month-on-month basis, reflecting the unusually high outflows seen in November.

Despite the monthly slowdown, overall repatriation during the July-December fiscal year 2026 rose by around 23 percent compared to the same period last year, highlighting stronger earnings outflows by foreign-owned businesses.

SBP data show that foreign companies sent $1.56 billion abroad in the first half of FY26, up from $1.23 billion in the same period last year, representing an increase of approximately $330 million. The rise reflects improved profitability in key sectors and smoother foreign exchange transfers compared to FY25.

The increase was driven largely by foreign direct investment (FDI) returns, which accounted for about 96 percent of total repatriation, while portfolio investment (FPI) returns remained modest and slightly lower than last year.

On a monthly basis, around $89 million was repatriated in December, including $81 million as FDI returns and $8 million from portfolio investments.

According to data from the State Bank of Pakistan (SBP), the financial sector recorded the largest increase in repatriated earnings, with strong growth also seen in the power and communications sectors.

During July to December FY26, the financial sector posted profits and dividend outflows of $368.9 million, sharply higher than $164 million in the same period last year.

The power sector ranked second, with repatriation increasing to nearly $359 million, reflecting improved cash flows and returns in energy-related projects.

Other notable contributors included food, pharmaceuticals, beverages, transport, and oil and gas exploration, though trends varied across sectors. Pharmaceuticals and food saw strong year-on-year growth, while sectors such as telecommunications, cement, and oil refining recorded declines.

Rising repatriation reflects improving profitability of foreign firms, but also means higher pressure on the external account, especially if export growth and foreign inflows do not keep pace.