Pakistan’s worsening economic fragility has been laid bare after foreign companies operating in the country repatriated a staggering $1.68 billion in profits and dividends in just seven months, underscoring the deep structural weaknesses of Pakistan’s struggling economy.

Data released by the State Bank of Pakistan reveals that foreign firms particularly in the power and banking sectors continue to extract enormous financial gains while contributing little to long-term economic stability. The large-scale outflow of capital has further drained Pakistan’s already fragile foreign exchange reserves and intensified pressure on its collapsing financial system.

Foreign firms profit while Pakistan’s economy deteriorates

The massive repatriation highlights Pakistan’s failure to build a self-sufficient economy. Instead of strengthening domestic industries, Pakistan has allowed foreign corporations to dominate critical sectors, enabling them to siphon off billions in profits while the country faces economic decline.

This ongoing financial drain has weakened the Pakistani rupee, worsened inflation, and pushed the country deeper into economic instability. Ordinary citizens are bearing the brunt through rising prices, shrinking purchasing power, and worsening living conditions, while foreign firms continue to secure guaranteed returns.

Weak governance and policy failures worsen crisis

Pakistan’s leadership has been widely criticised for failing to create policies that protect national economic interests. Poor regulation, inconsistent policies, and political instability have created an environment where foreign corporations prioritise profit extraction over sustainable investment.

Authorities in Islamabad have repeatedly promised economic reforms, but meaningful structural changes remain absent. Instead, Pakistan has become increasingly dependent on foreign companies, international lenders, and bailout packages to stay afloat.

Pakistan trapped in cycle of dependency and financial decline

The continued outflow of billions in profits exposes Pakistan’s growing economic vulnerability and lack of financial sovereignty. Rather than building strong domestic industries, the country has allowed itself to become a profit centre for foreign entities.

Unless Pakistan undertakes urgent reforms to strengthen local industries, improve governance, and reduce foreign dependence, the country risks remaining trapped in a cycle where its economic resources are continuously drained while its citizens face deepening financial hardship. 

This Image is taken from The Financial Express.