Repatriation of profit remains flat in FY25

The outflow of profits and dividends on foreign investment remained tightly controlled in FY25, totalling $2.219 billion — only slightly higher than the $2.15bn recorded in FY24, despite notable improvements in Pakistan’s external account and broader economic indicators. According to data released by the State Bank on Monday, the restrained profit repatriation came as a surprise to many in the financial sector, especially considering the more stable macroeconomic environment in FY25, which saw record remittances of $38.3bn, a current account surplus, a stable exchange rate, and support from the International Monetary Fund. In contrast, FY23 saw a sharp decline in profit outflows amid a severe economic crisis, dwindling reserves, and tight restrictions on foreign exchange payments. Profit repatriation on foreign direct investment (FDI) in FY23 fell to $1.349bn — a drop of $331m from FY22 — as foreign firms faced challenges in repatriating earnings and managing operations.