Karachi, August 8, 2025 — Pakistan recorded $3.21 billion in workers’ remittances during July 2025, according to the latest data released by the State Bank of Pakistan (SBP). This figure represents a 7.4% increase year-on-year compared to $3 billion received in July 2024, signaling a continued reliance on overseas workers for vital foreign exchange inflows.
Despite the annual improvement, remittances saw a month-on-month decline of 5.64% from June 2025, when Pakistan received $3.41 billion. While seasonal factors often influence fluctuations in monthly flows, experts observe that global economic conditions and currency dynamics may also be contributing to variations in remittance behavior.
The central bank’s data shows that a significant share of July’s inflows came from the Gulf and Western countries with strong Pakistani diaspora presence. Saudi Arabia remained the leading source, contributing $823.7 million. The United Arab Emirates followed closely with $665.2 million, while the United Kingdom accounted for $450.4 million and the United States contributed $269.6 million. These figures highlight the ongoing importance of these labor-export markets and the crucial role played by overseas Pakistanis in supporting the country’s economy.
The steady inflows have taken on heightened significance amid ongoing efforts to stabilize Pakistan’s macroeconomic indicators. Remittances remain one of the most stable sources of foreign exchange for the country, playing a critical role in reducing the current account deficit, stabilizing the Pakistani rupee, financing imports, and supporting domestic consumption.
For the fiscal year 2024-25, Pakistan reached a historic high in remittance receipts, receiving a total of $38.3 billion — a sharp 26.6% increase from $30.3 billion recorded in the previous fiscal year. Analysts attribute this growth to improved formal transfer mechanisms, digital banking adoption, incentives offered by the government to remittance senders, and robust engagement by the overseas community.
Remittance inflows have become increasingly central to Pakistan’s economic planning. In a country where foreign direct investment and export volumes remain volatile, the consistency of workers’ remittances has helped cushion external shocks and improve liquidity for key sectors, including household consumption, construction, and small business investment.
Economists emphasize the need to maintain momentum in remittance growth through policy incentives, further digitization of transfer channels, and bilateral agreements with host countries to safeguard workers’ rights and facilitate efficient money transfers. Ensuring transparency and competitive exchange rates through official banking channels remains a priority to curb informal flows.
With external debt obligations and inflationary pressures looming, Pakistan’s reliance on non-debt inflows such as remittances is expected to grow further. July’s remittance figures offer a promising start to the new fiscal year, giving policymakers some room to maneuver in a complex economic landscape.