Foreign investors' repatriation of profit, dividends surges 75% in July

August 22, 2025 (MLN): Foreign investors repatriated $244.0 million in profits and dividends from Pakistan in July 2025, marking a significant 75.3% increase compared to $139.1m recorded in the same period last year, according to the latest data released by the State Bank of Pakistan.

The substantial rise in profit repatriations clearly shows growing confidence among international investors in Pakistan's economic outlook and the profitability of their local investments.

Foreign Direct Investment (FDI) accounted for the overwhelming majority of outflows, with $243.8m repatriated compared to just $0.2m from Foreign Portfolio Investment (FPI).

Chinese investors dominated the repatriation landscape, sending back $88.8m in July 2025, a dramatic increase from $16.5m in July 2024, representing a 438% surge year-on-year.

This substantial outflow showcased the scale and profitability of Chinese investments in Pakistan, particularly under the China-Pakistan Economic Corridor (CPEC) framework.

The United Arab Emirates ranked as the second-largest source of profit repatriations at $43.5m in July 2025, up significantly from $20.7m in the previous year.

This increase of 110% reflects the strong economic ties between the two nations and the success of Emirati investments across various sectors in Pakistan.

European investors displayed varied repatriation patterns. The United Kingdom saw outflows of $25.6m in July 2025 compared to $29.9m in July 2024, representing a slight decline.

Meanwhile, the Netherlands recorded $20.2 million in repatriations, up from $2.9m the previous year, a remarkable increase that suggests expanding Dutch business interests in Pakistan.

German investors repatriated $17.9m compared to virtually nothing in July 2024, while French investors showed the opposite trend, with repatriations dropping from $30.6m to just $0.6m year-on-year.

American investors repatriated $6.2m compared to $22.1m in July 2024, while Japanese companies sent back $7.8m, up from $6.6m in the previous year.

Notably, several countries that had no recorded repatriations in July 2024 showed activity in 2025, including Austria ($0.5m), Denmark ($5.8m), Finland ($1.2m), Italy ($3.2m), and Saudi Arabia ($2m), indicating an expanding pool of international investors.

Sector-wise, coal-based projects dominated repatriations with $60.6m flowing out in July 2025, compared to zero repatriations in the previous year. 

Thermal power investments saw a contrasting trend, with repatriations dropping significantly from $28.3m in July 2024 to just $2.5m in July 2025.

Hydel power projects maintained steady performance with $8.2m repatriated compared to $1.2m in the previous year.

The pharmaceuticals and over-the-counter products sector emerged as the second-largest contributor with $22m in repatriations during July 2025, up from just $0.2m in July 2024. 

Mining and quarrying operations generated $19.7m in profit repatriations in July 2025, compared to no outflows in the previous year, indicating successful extraction and mineral processing ventures.

Storage facilities recorded significant repatriations of $17.1m in July 2025, a dramatic increase from $0.6m in July 2024, reflecting the growing importance of logistics and warehousing infrastructure in Pakistan's economy.

The transport sector, however, showed a decline with $16.8m repatriated compared to $21.2m in July 2024, suggesting either reduced profitability or reinvestment of earnings in expansion projects.

Petroleum refining sector contributed $15.4m to repatriations in July 2025, up significantly from just $0.1m in the previous year, indicating improved margins in the oil processing industry.

The food sector demonstrated robust growth with $14.7m in repatriations compared to $6.6m in July 2024, reflecting strong consumer demand and profitable food processing operations.

Financial services maintained steady performance with $13.3m repatriated in July 2025, slightly up from $16.1m when including portfolio investments in the previous year.

Transport equipment, primarily automobiles, maintained steady performance with $8m repatriated in July 2025 compared to $6m in the previous year.

Car manufacturing dominated this category with $7.9m compared to minimal motorcycle and commercial vehicle repatriations.

Telecommunications contributed $7.9m to repatriations, up from $3.4m in July 2024, reflecting the profitable operations of foreign telecom companies in Pakistan's growing digital economy.

The chemicals sector showed contrasting performance, with repatriations dropping to $2.1m from $13.5m year-on-year, possibly due to reinvestment strategies or market challenges.

The surge in profit repatriations, while representing capital outflow, indicates positive economic indicators for Pakistan.

Higher repatriations typically reflect improved business profitability and investor confidence in the local economic environment.

The fact that investors are generating substantial profits suggests successful business operations and a favourable investment climate.

However, the increased outflows also highlight the importance of attracting fresh foreign investment to maintain a healthy balance of payments position.

The government's ongoing efforts to improve the ease of doing business and create investor-friendly policies appear to be yielding results, as evidenced by the expanded geographical diversity of investing countries.

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