Pakistan Paid Foreign Investors $665 Million More Than It Attracted in FDI

During the fiscal year 2025-26, Pakistan paid $2.305 billion in profits and dividends to foreign investors, surpassing net foreign direct investment (FDI) inflows of $1.64 billion by approximately $665 million, according to a report presented to the National Assembly. The Special Investment Facilitation Council (SIFC) Division revealed that profit and dividend payments for direct investments totaled $2.202 billion, with an additional $103.7 million remitted from portfolio investments.

The combined outflows were about 41 percent higher than net FDI inflows, though the two figures represent distinct aspects of foreign investment and cannot be directly compared. Manufacturing led profit repatriation, accounting for $564.3 million, followed by financial and insurance activities with $537.4 million, and electricity, gas, steam, and air-conditioning supply with $496.5 million.

These sectors collectively accounted for over $2.26 billion in remittances, including both direct and portfolio investments. The government emphasized that net FDI represents inward direct investment, excluding relevant outflows, and that profits remitted may stem from investments made over multiple years. Improved foreign-exchange liquidity facilitated the clearance of previously delayed payments.

The Pakistan Investment Policy 2023, the SIFC's facilitation efforts, support through the Board of Investment, and the establishment of Special Economic Zones were cited as measures to attract diverse, export-oriented investments and encourage reinvestment.