Overseas workers’ remittances to Pakistan recorded a notable increase of 8.41 percent during the first quarter of fiscal year 2025–26, according to fresh data released by State Bank of Pakistan (SBP) on Thursday. The inflow reached $9.536 billion during July to September 2025, up from $8.796 billion during the same period last year, reflecting a steady recovery in external financing through remittance channels.
On a year-on-year basis, inflows surged 11.33 percent in September 2025, rising to $3.183 billion compared to $2.859 billion in September 2024. This growth underlines the resilience of overseas Pakistanis who continue to play a crucial role in stabilizing the country’s foreign exchange reserves and supporting its macroeconomic framework.
The SBP report shows that remittance inflows in September were largely sourced from key destination countries including Saudi Arabia ($750.9 million), the United Arab Emirates ($677.1 million), the United Kingdom ($454.8 million) and the United States ($269 million). These four markets continue to account for the lion’s share of total remittances to Pakistan, reflecting long-standing migration and labor linkages.
Adviser to the Finance Minister Khurram Schehzad said that remittances remain a lifeline for millions of households across the country. He highlighted that Pakistan received $38.3 billion in remittances during the previous fiscal year and projected that inflows are expected to exceed $41 billion in FY26. He emphasized that these inflows not only provide essential household income but also underpin the country’s external account stability.
“Remittances are not merely a source of financial inflow but a symbol of national and economic resilience,” he said, stressing their significance in sustaining foreign exchange reserves and strengthening financial buffers.
Currency market analysts, however, noted that while growth is positive, it is slightly weaker compared to the same period in FY25. Some experts have pointed to the impact of a “managed” exchange rate, suggesting that portions of inflows may be diverted to informal or non-banking channels if the official rate does not reflect true market parity.
Despite the rupee’s appreciation over the past two months, analysts argue that sustaining remittance inflows at the projected level will be crucial for currency stability. The government has set a $40 billion remittance target for FY26, a figure that could provide a buffer against external account pressures if achieved.
Pakistan’s remittances have historically been a stabilizing force for the economy, particularly in periods of external financing constraints. They help offset trade deficits, support the balance of payments, and provide liquidity to the banking system. Maintaining these inflows remains a priority for policymakers seeking to build resilience against external shocks.
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