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Pakistan’s remittance inflows continued to rise in September 2025, climbing 11.3% year-on-year to $3.2 billion. On a month-to-month basis, inflows grew by 1.46%, showing steady external support amid signs of economic recovery.
The growth was supported by a 2.6% rise in remittances from Gulf Cooperation Council (GCC) countries, which helped balance slower inflows from other regions. However, according to data, the transfers from the United Kingdom slipped 1.9% month-on-month, reflecting softer seasonal activity.
Despite global currency fluctuations, the Pakistani rupee showed resilience. It appreciated 0.15% MoM, closing at Rs281.21 per US dollar as of October 8, 2025, even as the U.S. Dollar Index (DXY) rose 1.43%. Analysts attributed this stability to strong remittance inflows and tighter administrative controls that narrowed the gap between interbank and open-market exchange rates.
Cumulative remittances for the first quarter of FY26 increased 8.4% year-on-year, showing consistent support from overseas Pakistanis. The figures also reflected Pakistan’s gradual economic stabilization.
In August 2025, Pakistan received $3.14 billion in workers’ remittances, 2.4% lower than July’s $3.21 billion. The drop resulted from weaker inflows from the U.S., the UAE, and South Korea, partly offset by stronger receipts from Saudi Arabia and the European Union.
While August inflows grew 7% year-on-year, their composition raised concerns about sustainability. According to the State Bank of Pakistan (SBP), remittances from the U.S. fell 13.7% compared to last year, highlighting Pakistan’s heavy dependence on Middle Eastern markets. Saudi Arabia and the UAE together contributed nearly half of the total inflows, leaving the country exposed to potential policy or economic shifts in these host nations.
Remittances from Europe surged 18%, while inflows from Malaysia and South Korea dropped 19% and 11%, respectively, indicating volatility in secondary labor markets.
Overall, cumulative remittances for the first two months of FY26 reached $6.4 billion, up 7% from $5.9 billion in the same period last year. In August, most inflows came from Saudi Arabia ($736.7 million), the UAE ($642.9 million), the UK ($463.4 million), and the U.S. ($267.3 million).
