Pakistan’s foreign remittance inflows continued their upward trajectory, reaching $3.2 billion in September 2025, according to fresh data released by State Bank of Pakistan. The increase reflects an 11.3% year-on-year rise compared to $2.9 billion recorded in the same month last year, signaling strong support from overseas Pakistani workers despite global economic uncertainties.
On a month-to-month basis, remittances saw a 1% uptick compared to $3.1 billion in August 2025. Cumulatively, during the first three months of FY26 (July to September), the country received $9.5 billion in remittances, marking an 8.4% increase from the $8.8 billion received during the same period in FY25.
Remittances play a crucial role in stabilizing Pakistan’s external account, supporting foreign exchange reserves, and boosting household incomes across the country. These funds not only strengthen the macroeconomic position but also provide essential financial cushioning for millions of families that depend on overseas earnings.
Advisor to the Finance Minister, Khurram Schehzad, expressed optimism that remittances could exceed $41 billion in the current fiscal year, compared to $38.3 billion received last year. He stated that sustained growth in inflows reflects both the trust and economic resilience of overseas communities. “Remittances are not just a source of funds, they are a symbol of national strength and economic stability,” he shared on social media platform X.
The country’s remittance growth has been supported by the Pakistan Remittance Initiative (PRI), launched in 2009 to channel funds through formal banking and financial networks. Since its inception, the number of participating financial institutions has expanded from 25 in 2009 to more than 50 in 2024, including conventional banks, Islamic banks, microfinance institutions, and exchange companies.
The number of international remittance partners has also grown significantly, rising from 45 in 2009 to around 400 currently. This expansion has allowed overseas Pakistanis to send funds more efficiently, benefiting from digital transfer channels and banking collaborations.
A detailed country-wise breakdown of remittances shows that inflows from Saudi Arabia remained the largest at $751 million in September 2025, reflecting a 2% monthly increase and a 10% annual rise. Remittances from United Arab Emirates stood at $677 million, marking a 7% year-on-year increase from $563 million in the previous year.
Meanwhile, inflows from United Kingdom reached $455 million, down 2% from August but still 7% higher year-on-year. Remittances from United States totaled $269 million, reflecting a 3% decrease compared to last year. Additionally, remittances from European Union countries amounted to $424 million.
This steady growth highlights the continued confidence of overseas workers in Pakistan’s formal remittance system, which has become more efficient with enhanced digital payment solutions and financial access points. With government and regulatory support, this upward momentum in remittance inflows is expected to provide critical stability to Pakistan’s external financing position throughout FY26.
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