Multinational companies repatriated a significant $1.719 billion in profits and dividends during the first nine months of FY2025 — marking a sharp 108% increase, according to the State Bank of Pakistan (SBP).
This surge reflects the SBP’s continued facilitation of capital outflows for foreign investors, indicating growing confidence in Pakistan’s external account stability, as reported by The News.
In March alone, foreign corporations and investors withdrew $157.9 million, including returns from stock market investments.
The country’s external position showed notable improvement in March, posting a record $1.2 billion current account surplus, supported by increased remittances. This was a turnaround from a $97 million deficit recorded in February. Over the July–March FY2025 period, Pakistan achieved a $1.9 billion current account surplus — a stark contrast to the $1.7 billion deficit seen in the same period last year.
The SBP forecasts its foreign exchange reserves will exceed $14 billion by June. Currently, reserves stand at $10.57 billion, sufficient to cover two months of imports.
Foreign Direct Investment (FDI) also saw positive momentum, growing 14% to $1.644 billion in the July–March period. However, March FDI inflows dipped significantly to $25.7 million, compared to $294.2 million in March 2024.
SBP data shows profit repatriation from FDI rose to $1.649 billion during July–March FY25, up from $764.3 million the previous year. Repatriation from foreign portfolio investments also increased to $70.8 million from $61.7 million.
The power sector topped the list for outflows, with $327.9 million repatriated — up from $113.5 million last year. It was followed by the food sector at $291 million and the financial sector at $214.2 million.
