Key Takeaways
- Pakistan paid $2.305 billion to foreign investors in profits and dividends.
- Net foreign direct investment (FDI) inflows were $1.64 billion, a shortfall of $665 million.
- Manufacturing sector led in profit repatriation, accounting for $564.3 million.
Pakistan paid $2.305 billion in profits and dividends to foreign investors during fiscal year 2025-26, significantly exceeding net foreign direct investment (FDI) inflows of $1.64 billion by approximately $665 million, according to a written reply from the minister in charge of the Special Investment Facilitation Council (SIFC) Division to Dr. Mahreen Razzaq Bhutto in the National Assembly.
The government noted that the two figures represent different aspects of foreign investment and should not be directly compared, as net FDI inflows reflect inward direct investment after relevant direct-investment outflows, while profits remitted during a particular year may arise from investments made over several years.
Manufacturing led in profit repatriation, with $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, while information and communication, transportation and storage, and mining and quarrying sectors each contributed $166.9 million, $162.1 million, and $124.6 million respectively.
The seven sectors together accounted for more than $2.26 billion in remittances, including payments on both direct and portfolio investments. The government cited improved foreign-exchange liquidity as a factor in clearing previously delayed payments.
To illustrate continued investment inflows, the government reported gross FDI of $4.268 billion in fiscal year 2024-25 and $3.603 billion during July-April FY2025-26. These figures cover different periods and measure gross rather than net inflows.
The government highlighted the Pakistan Investment Policy 2023, the SIFC’s investment-facilitation role, support for investors through the Board of Investment, and the development of Special Economic Zones as measures aimed at attracting diversified, export-oriented investment and encouraging reinvestment.
The minister emphasized that the government is committed to creating a conducive environment for foreign investment, despite the current imbalance in payments and inflows.
