In July of the current fiscal year, repatriation of profits and dividends from foreign investments in Pakistan soared to $139 million, a staggering 64.5-fold increase compared to the same month last year, as reported by the State Bank of Pakistan.
However, there was a significant 66.4% drop in month-on-month repatriation compared to June, when multinational companies and foreign investors sent $415 million back to their home countries.
Specifically, profit repatriation from foreign direct investment reached $133.9 million in July FY25, a sharp rise from just $1.5 million in July of the previous year.
Additionally, $5.3 million in profits and dividends from portfolio investments were repatriated this July, compared to $0.6 million during the same month last year.
Notably, the outflow of repatriated profits and dividends surpassed foreign direct investment inflows, which totaled $136 million in July.
The power sector accounted for the largest outflow, with profits and dividends reaching $29.5 million, a 103-fold increase from the previous year.
Read more
The transport sector followed with $21.2 million, and the financial sector recorded $16.1 million in outflows during this period.
In July FY2025, Pakistan’s current account deficit improved, falling to $162 million, which represents a 78% decrease from the prior year and a 48% decrease from the previous month, driven by increased remittances and a better balance of primary income.
In July 2023, only $2.2 million had been repatriated.
