Pakistan Sees Growth in Workers’ Remittances for July

In the new fiscal year 2026, remittances from overseas workers have demonstrated positive momentum, with a 7.4% increase year-on-year in July, showcasing continuous inflows.

The State Bank of Pakistan (SBP) indicated on Friday that remittance inflows reached $3.214 billion in July 2025, compared to $2.994 billion in July 2024, marking a $220 million rise.

However, remittances for the first month of this fiscal year are approximately 5.6% lower than in June 2025, when the nation received $3.406 billion.

In the previous fiscal year, workers’ remittances played a vital role, effectively compensating for the growing trade deficit. There was a significant 27% growth in workers’ remittances in fiscal year 2025 compared to fiscal year 2024.

Pakistan received a record $38.3 billion in remittances during fiscal year 2025, up from $30.25 billion in fiscal year 2024. These remittances were essential in balancing the widening trade deficit.

Governor of the SBP, Jameel Ahmed, anticipates continued growth in remittances in the current fiscal year. Yet, he suggested that the growth rate might decelerate in the coming months because of the high base effect and recent adjustments to remittance incentive programs.

The SBP Governor stated that the remittance target for the present fiscal year is set at $40 billion, exceeding the $38.3 billion achieved in the prior fiscal year.

Saudi Arabia was the primary source of remittance inflows in July 2025, contributing $823.7 million, which is an 8.4% increase. Inflows from the United Arab Emirates (UAE) increased by 8.8% to $665.2 million in the fiscal year’s first month, compared to $611 million during the same period last year.

Remittances from the United Kingdom (UK) saw a two percent rise, reaching $450.4 million in July 2025, up from $443 million in July 2024. Conversely, inflows from the United States of America (USA) declined by 10% to $269.6 million in the first month of fiscal year 2026.