Foreign companies operating in Pakistan repatriated more than US$ 2 billion in profits during the first 10 months of FY2025-26.
According to the State Bank of Pakistan, profit repatriation was up 8.7 percent in 10<FY26 compared to last year. In April alone, foreign companies remitted US$ 172 million in profits and dividends, marking a 42 percent increase compared with the same month a year earlier.
The financial sector accounted for the largest share of April’s outflows, with foreign banks and financial institutions repatriating US$ 72 million.
The food sector followed with US$ 30 million, while tobacco and cigarette companies transferred US$26 million overseas.
Based on top countries that took out profit from Pakistan, the United Kingdom recorded the highest profit repatriation during the month at US$81 million, highlighting the significant presence of British investors in Pakistan’s corporate sector.
The rise in profit repatriation comes as Pakistan’s external account has improved considerably compared with recent years, allowing foreign companies greater flexibility to transfer earnings abroad.
During periods of foreign exchange shortages, multinational firms faced difficulties in repatriating profits due to restrictions and limited dollar availability.
While higher profit repatriation is often viewed as a sign of improved business profitability and investor confidence, it also represents an outflow of foreign exchange at a time when Pakistan remains focused on strengthening its external account position and rebuilding foreign currency reserves.