UK leads foreign profit repatriation as $1.55bn flows out of Pakistan in 8MFY25

ISLAMABAD: The repatriation of profits and dividends by foreign investors has surged by 104 per cent year-on-year (YoY) during the first eight months of the fiscal year 2024-25 (8MFY25), reaching $1.55 billion.

This marks a significant rise compared to the $760.19 million repatriated during the same period last year, according to the latest data from the central bank.

Foreign companies sent $1.49 billion in profits back to their home countries as a return on foreign direct investments (FDI) in various sectors, representing a 110.88 per cent increase from the $704.69 million repatriated in the corresponding period of the previous fiscal year.

In terms of portfolio investments, the outflow stood at $64.73 million, slightly up from $55.49 million in 8MFY24, showing a 16.64 per cent increase. For February 2025 alone, foreign firms repatriated $233.29 million in profits and dividends.

A breakdown by country reveals that investors from the United Kingdom repatriated the largest share, sending $496.59 million back home in 8MFY25, a sharp increase from $107.99 million in the same period last year. In February alone, UK-based investors repatriated $62.56 million.

The United States followed with $176.61 million repatriated in 8MFY25, a notable increase from $47.37 million during the same period last year. The Netherlands ranked third, repatriating $158.88 million, compared to $28.63 million in the previous fiscal year. The UAE came in fourth, with $145.25 million repatriated during the review period.

In terms of sectors, the Food industry led the pack, repatriating $290.59 million during 8MFY25. The Power sector followed, sending $233.47 million in profits overseas, while the Financial Business sector saw a significant rise, repatriating $192.6 million.

The Oil and Gas Exploration sector recorded an outflow of $109.09 million, while the Communications sector followed closely with $108.61 million repatriated during the same period.

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