Qudsia Bano

Economists believe the steady rise in remittances is reinforcing Pakistan’s external financial stability and providing crucial support for household consumption and foreign exchange reserves.

 Talking to WealthPK, Dr. Hina Qureshi, senior economist at the Centre for Policy Research, said the latest increase in inflows testifies to sustained trust in Pakistan’s financial system. “Remittances are not only a source of foreign exchange but also a stabilising force for the economy. The consistent year-on-year growth shows that overseas Pakistanis continue to play a vital role in cushioning the country against external shocks,” she explained.

Latest figures from the State Bank of Pakistan show that the workers’ remittances reached $3.2 billion in July this year, up by 7.4 percent compared to the same month last year. A remittance of $823.7 million came from Saudi Arabia, $665.2 million from the United Arab Emirates, $450.4 million from the United Kingdom, and $269.6 million from the United States.

According to Dr. Adnan Malik, an international finance analyst at the International Finance Corporation (IFC), these numbers are not just statistics but a reflection of stronger connectivity between Pakistan’s banks and its diaspora abroad.

“The fact that such a large share comes from traditional corridors like Saudi Arabia and the UAE highlights the importance of maintaining worker welfare agreements with these countries. At the same time, the rising contributions from the UK and the US show that Pakistan’s remittance base is geographically diverse, which helps reduce dependency risks,” he noted.

 Experts say the real opportunity lies in leveraging this inflow for economic development rather than short-term consumption. By introducing structured investment schemes, remittance earnings could be channelled into housing, small business finance, and infrastructure projects, creating long-term value for the economy.

“If we can offer overseas Pakistanis attractive, safe, and transparent investment opportunities, we can convert this annual inflow into a driver of sustainable growth,” Dr. Qureshi added.

Credit: INP-WealthPk