28% increase in profits of foreign companies: Is Pakistan becoming a paradise for foreign investment?

According to the latest report of the State Bank of Pakistan, the return of profits on foreign investment has reached $1.7 billion in the first seven months of the fiscal year 2025-26, which is being considered an important step towards economic stability. In previous years, when Pakistan was facing a severe financial crisis, many international companies complained that they were not being allowed to repatriate their profits. However, now the increase of 27.92% proves that the government and the State Bank have made the “exit route” easier for global companies, which is a basic condition for bringing investment to any country.

The figures for foreign investment in the month of October have also been encouraging, indicating that along with the return of profits, new investments are also coming into the country. Foreign companies in the banking and finance sector performed well and transferred over $371 million. The energy sector also contributed significantly and sent $400 million in profits abroad. These payments are part of the agreements that Pakistan has made with global investors.

The highest profits have been earned by companies from the UK and China. The UK received $442.76 million, while China received $413.11 million. Economic relations with China and the UK are the backbone of Pakistan’s fiscal policy. Economic observers say that although this $1.7 billion amount affects our current account deficit, it is important to give investors their due in terms of long-term benefits. This will not only keep existing investors happy but will also attract new investors to Pakistan, which could accelerate the pace of economic growth in the coming months.