State Bank of Pakistan Governor Jameel Ahmad has highlighted the contribution of overseas Pakistanis to the country’s external sector, saying the continuous flow of remittances has helped Pakistan achieve a lower current account deficit while also supporting the rebuilding of foreign exchange reserves.
Speaking to members of the Pakistani diaspora in London, Governor Jameel Ahmad said remittance inflows have remained an important source of support for Pakistan’s external position. He made the remarks while addressing the Roshan Digital Account and Remittance Roadshow, where the central bank engaged with overseas Pakistanis on remittances and digital channels for sending funds to Pakistan.
According to the governor, the sustained flow of funds from overseas Pakistanis has contributed to an improvement in the country’s current account position. Remittances form a major component of Pakistan’s secondary income and provide foreign exchange that can help offset pressures arising from the trade deficit and other external payments. The continued strength of these inflows has therefore become an important factor in the country’s balance of payments position.
Governor Ahmad also linked the steady remittance flows with Pakistan’s efforts to rebuild its foreign exchange reserves. Stronger reserve holdings provide the country with a larger buffer for meeting external payment requirements and managing pressure on the balance of payments. The State Bank of Pakistan has been reporting a stronger reserve position compared with the previous year, although reserves have remained below the peak reached earlier in 2026.
The governor’s comments come as Pakistan’s latest current account data shows a significant improvement in the monthly position. The country recorded a current account deficit of $98 million in August 2026, compared with a $445 million deficit in July and a $324 million deficit in August 2025. The August figure was the lowest monthly deficit since April, with remittance inflows providing substantial support to the external account.
Workers’ remittances reached $3.66 billion in August, compared with $3.14 billion during the same month last year, representing year-on-year growth of 16.5%. Remittances were also slightly higher than the $3.63 billion recorded in July. During the first two months of fiscal year 2027, remittance inflows reached $7.29 billion, up 14.7% compared with the corresponding period of the previous fiscal year.
The latest figures also show why remittances remain important for Pakistan’s external account. During July and August, the country’s combined trade deficit in goods and services widened to $6.75 billion, increasing 13.2% year-on-year. The pressure from the trade account was partly offset by stronger secondary income, which reached $3.89 billion in August and was dominated by workers’ remittances.
At the end of August, State Bank of Pakistan gross foreign exchange reserves stood at $18.48 billion, slightly higher than the $18.34 billion recorded at the end of July. The reserve position was also 18.1% higher than the $15.66 billion held at the end of August 2025. These figures indicate that the reserve position has strengthened over the past year, despite remaining below the June 2026 level of $19.69 billion.
The Roshan Digital Account and Remittance Roadshow in London provides a platform for the central bank to engage directly with overseas Pakistanis and discuss formal channels for remitting funds and investment opportunities. The Roshan Digital Account has been developed to facilitate banking and investment services for Pakistanis living abroad, while remittance channels allow overseas workers and families to transfer funds into the country through formal financial systems.
Governor Jameel Ahmad’s remarks underline the importance of overseas Pakistanis in supporting Pakistan’s external accounts. While remittances have helped reduce pressure on the current account and contributed to reserve accumulation, the country’s wider external position also remains influenced by imports, exports, services, debt-related payments and other financial flows. Continued remittance growth therefore remains a key factor as Pakistan manages its balance of payments during fiscal year 2027.
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