Pakistan’s outflow of profits and dividends on foreign investments fell 13.4% during the first two months of FY27, declining to $557.6 million from $643.7 million recorded during the same period last year.
The decline comes despite foreign exchange reserves rising significantly. The country’s foreign exchange reserves reached $21.4 billion last week following a $3 billion inflow from a Eurobond issuance.
Profit and dividend repatriation had increased by 3.87% during FY26, reaching $2.3 billion.
Foreign investment continued to face challenges during FY26, with foreign direct investment falling 34% to $1.64 billion from $2.48 billion a year earlier.
The latest decline in profit outflows comes amid continued concerns over the country’s ability to attract foreign investment. Regional instability and disruptions in global energy supplies have also created additional challenges for investment flows.
During the first two months of FY27, China recorded the highest profit outflow from Pakistan at $161.2 million, down from $205.6 million during the corresponding period last year.
Profit outflows to the Netherlands increased to $107 million from $86.7 million, while those to the United Kingdom declined to $103 million from $147.5 million.
The UAE recorded the largest decline, with profit outflows falling by more than 50% to $19.2 million from $45 million during the same period last year.
