Key Takeaways
- Pakistan paid USD 2.305 billion in profits and dividends to foreign investors in FY2025-26.
- This amount was 41% higher than net FDI inflows of USD 1.64 billion.
- Manufacturing sector contributed the largest share at USD 564.3 million.
The Special Investment Facilitation Council (SIFC) informed the National Assembly that Pakistan paid USD 2.305 billion in profits and dividends to foreign investors during the fiscal year 2025-26, significantly exceeding net foreign direct investment (FDI) inflows by USD 665 million.
Of the total, USD 2.202 billion was attributed to profit and dividend repatriation on direct investment, with an additional USD 103.7 million remitted on portfolio investments.
The manufacturing sector led the remittances, accounting for USD 564.3 million, followed by financial and insurance activities at USD 537.4 million and electricity, gas, steam, and air-conditioning supply at USD 496.5 million.
Wholesale and retail trade, information and communication, transportation and storage, and mining and quarrying sectors also contributed substantially, with remittances of USD 211.6 million, USD 166.9 million, USD 162.1 million, and USD 124.6 million, respectively.
The combined outflows from these seven sectors amounted to more than USD 2.26 billion, highlighting the significant scale of investment-income payments abroad during the fiscal year.
The government cautioned against directly comparing annual net FDI with profit repatriation, noting that the two figures reflect different aspects of foreign investment. Net FDI represents inward direct investment after relevant direct-investment outflows, while profits remitted in a particular year may arise from investments made over several years.
To support its position that Pakistan continues to attract foreign investment, the government cited gross FDI inflows of USD 4.268 billion in FY2024-25 and USD 3.603 billion during July-April FY2025-26. These figures cover different reporting periods and measure gross rather than net inflows.
The government highlighted measures such as the Pakistan Investment Policy 2023, the SIFC’s investment-facilitation role, investor support through the Board of Investment, and the development of Special Economic Zones as part of its strategy to attract diversified, export-oriented investment and encourage reinvestment.
However, the reply did not establish whether the SIFC had conducted a separate assessment of the impact of profit repatriation during FY2025-26 on foreign-exchange reserves and the current account. The government suggested that confirmation and any quantified assessment should be obtained from the State Bank of Pakistan (SBP) and the Finance Division.
