Qudsia Bano

Pakistan’s workers’ remittances climbed to $3.2 billion in September 2025, showing an 11.3% increase compared to the same month last year, according to data released by the State Bank of Pakistan (SBP). The steady growth underscores the sustained support of overseas Pakistanis amid a challenging global economic environment.

During the first quarter of the current fiscal year (FY26), total remittances reached $9.5 billion, up 8.4% from $8.8 billion recorded in the corresponding period of FY25. The steady performance indicates continued stability in the external account and provides critical support in easing pressure on the current account deficit.

Country-wise data shows Saudi Arabia remained the top source of inflows with $750.9 million, followed by the United Arab Emirates ($677.1 million), the United Kingdom ($454.8 million), and the United States ($269.0 million). Together, these four destinations accounted for a major share of total remittances during the month.

Strong inflows from both the Middle East and Western economies reflect the resilience of overseas job markets and the confidence of expatriate Pakistanis in official banking channels. The rise also stems from continued government and banking initiatives promoting digital and formal money transfer systems, which enhance transparency and reduce transaction costs.

Remittances have long served as a lifeline for Pakistan’s external finances, often surpassing export receipts in several months. The latest surge is expected to help stabilize the rupee, bolster foreign exchange reserves, and strengthen the country’s balance of payments. With a positive first-quarter trend, attention now turns to whether the current momentum can be sustained amid shifting global economic conditions and currency movements in key host countries.

Credit: INP-WealthPk