KARACHI: The repatriation of profits and dividends fell 11.5 per cent in July, the first month of FY27, but remained higher than the Foreign Direct Investment (FDI) inflows.

The data released by the State Bank of Pakistan (SBP) on Thursday showed that outflows were $261.4 million, compared with $295 million in July 2025. However, the outflow was 73pc higher than the $151.4m in June.

Most importantly, the country has consistently been unable to attract FDI despite the creation of the Special Incentive Facilitation Council.

The FDI remained at half in FY26 compared to the previous year, falling to around $1bn from $2bn in FY25.

The FDI dropped 20pc year-on-year to $178.6m in July. In the 2nd half of FY26, the Gulf War played a key role in deterring foreign investors from the country, causing a massive decline in the FDI.

The profit outflow to the UAE declined significantly to $14.7m from $43.5m in July FY26. Pakistan has good relations with the UAE, but trade has declined mainly due to the war in the region. Hundreds and thousands of Pakistanis are still working in the UAE, and remittances increased in FY26.

The highest amount, $114m, was remitted to China in July, compared with $88.8m in the same month last year.

Outflow to the UK dropped to $47m against $76.6m in the same month last year. The US received a significantly higher amount, $26.4m, compared to just $6.2m.

A profit of $30m was repatriated to the Netherlands, compared with $20m in the same month last year.

Uptick in SBP reserves

The total liquid foreign reserves held by the country stood at $22.506bn as of Aug 13, reported SBP on Thursday.

During the week, the SBP forex holdings increased by $25m to $17.081bn.

Net foreign reserves held by commercial banks stood at $5.424bn during the week.

Published in Dawn, August 21st, 2026