Overseas companies repatriate nearly $1.7 billion from Pakistan amid decline in FDI

2026-02-26 - 08:33

ISLAMABAD – Foreign companies operating in Pakistan repatriated a significant $1.68 billion in profits and dividends during first seven months (July-January) of ongoing fiscal year 2025-26. This represents a stark contrast to the country’s investment achievements, as the Securities and Exchange Commission of Pakistan (SECP) reports a three-year investment goal of just $145 million. Sources said the pace of profit outflows is currently 11.6 times larger than the SECP’s investment achievement, indicating an alarming trend in capital leaving the country. During the same period, Pakistan saw a 41 percent decline on year-on-year basis in net Foreign Direct Investment (FDI), with inflows falling to $981 million from $1.66 billion in the previous year, they highlighted. This decline highlights concerns about Pakistan’s ability to attract and retain foreign investments amidst economic challenges. The power sector was the largest contributor to these outflows, sending $400.2 million abroad. Financial services followed closely, with $371.3 million in profits repatriated. Additionally, the food sector witnessed a sharp rise in profit repatriation, reaching $142.4 million, further reflecting the growing trend of capital leaving Pakistan rather than being reinvested.