Profit repatriation, meaning the profits and dividends that foreign investors take out of Pakistan, reached $2.305 billion in fiscal year 2025-26. That is about $665 million more than the net foreign direct investment (FDI) the country attracted in the same year, which stood at $1.64 billion. A written reply to the National Assembly, given by the minister in charge of the Special Investment Facilitation Council (SIFC) Division, put the combined outflows nearly 41 percent above net FDI inflows.
Where the outflows went
Of the total, $2.202 billion was profit and dividend payments on direct investment, while another $103.7 million was remitted on portfolio investments such as shares and bonds held by foreign investors. Manufacturing was the largest recipient at $564.3 million, followed by financial and insurance activities at $537.4 million and electricity, gas, steam and air-conditioning supply at $496.5 million. Wholesale and retail trade recorded $211.6 million, information and communication $166.9 million, transportation and storage $162.1 million, and mining and quarrying $124.6 million. Together, the seven sectors accounted for more than $2.26 billion, and these sector figures include both direct and portfolio payments.
The government's explanation
The government cautioned against setting annual net FDI beside profit repatriation. It said net FDI is inward direct investment after the relevant direct-investment outflows are deducted, while profits sent abroad in one year may come from investments made over several years. It also said better foreign-exchange liquidity had allowed the clearance of payments that were delayed earlier. To show that investment was still coming in, it cited gross FDI of $4.268 billion in FY2024-25 and $3.603 billion for July to April of FY2025-26, noting that these cover different periods and count gross rather than net inflows.
The minister also listed the Pakistan Investment Policy 2023, the SIFC's investment-facilitation role, support through the Board of Investment, and the development of Special Economic Zones as measures meant to attract export-oriented investment and encourage reinvestment.
What the reply left open
The reply did not say whether the SIFC had carried out a separate assessment of how profit repatriation during FY2025-26 affected foreign-exchange reserves and the current account, the broader record of trade and income flows with the rest of the world. It said any confirmation or quantified assessment should come from the State Bank of Pakistan (SBP), the central bank, and the Finance Division. Until those figures are published, the effect on reserves cannot be judged from the reply alone.
Aasan alfaaz mein
Pakistan ne FY2025-26 mein foreign investors ko $2.305 billion munafe aur dividend ki shakal mein wapas bheje, jo net FDI se lagbhag $665 million zyada hai. Sarkar kehti hai ke dono aadad alag cheezein napti hain, is liye inhe seedha mukablay mein nahi dekhna chahiye. Is ka matlab hai ke foreign investment ki wapsi aur naye paise ki aamad dono par nazar rakhni hogi. Is reply mein aam logon ki qeematon ya bills par asar ka koi seedha hisab nahi diya gaya.
