FOREIGN investors are cashing out big time in Pakistan – pulling away profits while fresh capital hesitates.

Beneath the glow of celebrated macro stabilisation lies deep structural rot. On the surface, things appear steadier: foreign exchange reserves sit around $16.2 billion at the State Bank; inflation has cooled to single digits; remittances climb above $23 billion in the first seven months of FY26. These gains create smoother capital flows – no more desperate queues at forex counters, no blocked transfers. Foreign owners now pull out earnings with confidence.

Yet the deeper picture looks darker. Old investments in protected sectors harvest handsome returns – then exit fast. Profit and dividend repatriation reached about $1.68 billion in July–January FY26 – a sharp surge from the previous year. The power sector drove much of the jump: guaranteed dollar yields and........

© Pakistan Observer