Pakistan Pays $665 Million More to Foreign Investors Than It Attracts

Pakistan Pays $665 Million More to Foreign Investors Than It Attracts in FDI

Pakistan paid $2.305 billion in profits and dividends to foreign investors in FY2025-26, outpacing net FDI inflows of $1.64 billion by about $665 million.

NationPulse Desk

Oct 24, 2026 · 12:15 PM 2 min read

Key takeaways

Pakistan paid $2.305 billion in profits and dividends to foreign investors in FY2025-26.

Net FDI inflows for the same period were $1.64 billion, $665 million less than outflows.

Manufacturing accounted for the largest share of profit payments at $564.3 million.

The seven sectors listed together contributed over $2.26 billion in remittances.

Improved foreign-exchange liquidity helped clear previously delayed payments.

Pakistan paid $2.305 billion in profits and dividends to foreign investors during fiscal year 2025-26, surpassing net foreign direct investment inflows of $1.64 billion by roughly $665 million, the National Assembly was told.

In a written response to Dr. Mahreen Razzaq Bhutto, the minister overseeing the Special Investment Facilitation Council Division said $2.202 billion came from direct-investment profit and dividend payments, with an additional $103.7 million remitted on portfolio investments.

The total outflows were almost 41 percent higher than net FDI inflows. Officials warned that the two numbers represent different facets of foreign investment and should not be directly compared.

Manufacturing Leads Profit Repatriation

Manufacturing generated the biggest portion of profit and dividend outflows at $564.3 million. Financial and insurance activities followed with $537.4 million, and electricity, gas, steam and air-conditioning supply contributed $496.5 million.

Wholesale and retail trade saw $211.6 million in payments, information and communication $166.9 million, transportation and storage $162.1 million, and mining and quarrying $124.6 million.

Together, these seven sectors accounted for more than $2.26 billion in remittances. The sector figures include payments on both direct and portfolio investments, not just direct-investment outflows.

Delayed Payments Were Cleared

The government explained that net FDI reflects inward direct investment after deducting related outflows, while profit remittances in a given year may stem from investments made over several years.

It added that better foreign-exchange liquidity allowed the settlement of previously delayed payments.

To show ongoing investment inflows, the government cited gross FDI of $4.268 billion in FY2024-25 and $3.603 billion for July-April FY2025-26. These figures cover different periods and represent gross rather than net inflows.

Officials said the Pakistan Investment Policy 2023, the SIFC's facilitation role, support from the Board of Investment, and the creation of Special Economic Zones are among the steps aimed at attracting diversified, export-oriented investment and encouraging reinvestment.

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