Profit Repatriation Down by Over 72% in June 2025

In a startling reversal, foreign investors repatriated just $114.2 million in profits and dividends from Pakistan in June 2025, representing a sharp 72.4% decline compared to the same month last year, according to State Bank data. While repatriation for the full fiscal year remained relatively stable at $2.22 billion, the steep June drop mirrors tighter foreign exchange measures and lingering investor caution

Jul 22, 2025 - 15:04
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Profit Repatriation Down by Over 72% in June 2025
Profit Repatriation Down by Over 72% in June 2025

In a startling reversal, foreign investors repatriated just $114.2 million in profits and dividends from Pakistan in June 2025, representing a sharp 72.4% decline compared to the same month last year, according to State Bank data. While repatriation for the full fiscal year remained relatively stable at $2.22 billion, the steep June drop mirrors tighter foreign exchange measures and lingering investor caution. Key factors include sectoral shifts that saw some industries cutting back while others surged, and policymakers maintaining FX discipline amid macroeconomic fragility. This downturn offers a window into Pakistan’s delicate balance between supporting investor returns and safeguarding foreign reserves.

  • June 2025 profit repatriation shrank by 72.4% YoY, falling to $114.2 million 

  • Year-to-date FY2025 total remained steady at $2.219 billion, nearly matching FY2024

  • Sectoral mix in FY25:

  • Power: $399 million

  • Financial: $383 million

  • Food: $306 million

  • Oil & gas: $146 million 

  • June’s outflow: $103.6 M from FDI; $10.6 M from portfolio investments 

  • May 2025 saw a rebound to $264 million, but still trailed May 2024’s numbers 

  • Foreign investor sentiment remains cautious even amid improved current account and FX reserves

Stabilized FX Policy

Authorities appear to have deliberately curbed profit outflows in June to strengthen foreign exchange reserves, even as broader macro indicators improved

Monthly Volatility

Profit repatriation tends to spike in May but sharply drop the following month. May’s $264 million reflected such a peak. June dipped dramatically even as FY 2025 totals stayed consistent 

Foreign Investor Wariness

Despite macro gains (current account surplus and steady remittances), cautious sentiment persists among multinationals, evidenced by FY 25’s flat FDI and dividend series at $2.22 billion

  • Power sector saw highest profits repatriated, driven by capacity payments despite structural reform pressures

  • Financial sector outflows more than halved year-on-year due to reduced income from high-yield government bonds. Food and oil & gas sectors showed marked increases in profit transfers, signaling business confidence in those industries

  • May 2025 rebounded to $264 million, still down from May 2024, showing strong rebound month-over-month but weak YoY 

  • June 2025 slumped to $114.2 million, with the bulk from FDI; portfolio flows remitted just $10.6 million

  • FX Controls Balanced with Confidence

  • The SBP’s move to control outflows likely aided reserve stability, but may deter investor sentiment if prolonged.

  • Sectoral Shifts Indicate Focused Priorities

  • Government discussions around power tariffs and food exports show sectors prioritized differently, reflected in profit flows.

  • Need for FDI Boost

  • Cumulative FY25 FDI modest growth points to urgent need for policies that spur capital inflows.

  • Cautious External Environment

  • Despite macroeconomic stability, investor fear persists—more transparent policies and improved governance needed.

June 2025’s 72% collapse in profit repatriation reflects a deliberate policy stance to stabilize foreign exchange reserves. While FY 2025’s total repatriation mirrored last year, the dramatic monthly drop highlights the tension between safeguarding macroeconomic stability and maintaining investor confidence.