Pakistan paid $2.305 billion in profits and dividends to foreign investors during fiscal year 2025-26, exceeding net foreign direct investment (FDI) inflows of $1.64 billion by approximately $665 million, the National Assembly was informed.
In a written reply to a question from Dr. Mahreen Razzaq Bhutto, the minister in charge of the Special Investment Facilitation Council (SIFC) Division said profit and dividend payments on direct investment totaled $2.202 billion, while another $103.7 million was remitted on portfolio investments.
The combined outflows were nearly 41 percent higher than net FDI inflows. The government cautioned, however, that the two figures reflect different aspects of foreign investment and should not be compared directly.
Manufacturing Leads Profit Repatriation
Manufacturing accounted for the largest share of profit and dividend payments, at $564.3 million. Financial and insurance activities followed with $537.4 million, while electricity, gas, steam and air-conditioning supply accounted for $496.5 million.
Wholesale and retail trade recorded $211.6 million in payments, followed by information and communication at $166.9 million, transportation and storage at $162.1 million, and mining and quarrying at $124.6 million.
The seven sectors together accounted for more than $2.26 billion in remittances. The sector-wise figures include payments on both direct and portfolio investments, rather than direct-investment outflows alone.
Delayed Payments Were Cleared
The government said net FDI represents inward direct investment after relevant direct-investment outflows, while profits remitted during a particular year may arise from investments made over several years.
It added that improved foreign-exchange liquidity had enabled the clearance of previously delayed payments.
To demonstrate continued investment inflows, the government cited gross FDI of $4.268 billion in FY2024-25 and $3.603 billion during July-April FY2025-26. The figures cover different periods and measure gross rather than net inflows.
The government said the Pakistan Investment Policy 2023, the SIFC’s investment-facilitation role, support for investors through the Board of Investment, and the development of Special Economic Zones were among the measures intended to attract diversified, export-oriented investment and encourage reinvestment.
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