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Pakistan’s remittances rise 11.3 percent year-on-year in September 2025, even as the country recorded a sharp 55.5 percent decline in foreign direct investment (FDI), according to the Monthly Economic Update and Outlook (October 2025) released by the Finance Division on Monday.
The report revealed that remittance inflows surged in September compared to the same month last year, while FDI dropped from $417.4 million in September 2025 to $185.6 million in September 2026. Overall, total foreign investment fell by 64.5 percent, sliding from $446.9 million in 2024 to a negative $361.1 million last month.
Inflation is projected to remain between 5 and 6 percent in October 2025 as floods and temporary border closures push up prices of key commodities. Despite these challenges, the government reiterated its commitment to maintaining fiscal discipline, keeping inflation within target, and supporting vulnerable citizens through targeted relief.
A preliminary assessment estimated that the recent floods caused Rs430 billion in agricultural losses, damaging crops such as rice, cotton, sugarcane, maize, fodder, and vegetables. However, recovery signs are emerging, backed by higher agricultural credit, increased machinery imports, and improved fertilizer offtake.
During July-September FY2026, remittances reached $9.5 billion, up 8.4 percent, mainly driven by inflows from Saudi Arabia (24.2 percent share) and the UAE (20.8 percent). Despite the rise in remittances, Pakistan’s remittances rise coincided with a slowdown in FDI, which dropped to $568.8 million. The power ($244.3 million) and financial services ($180.2 million) sectors attracted the most investment, with China and Hong Kong as the leading contributors.
