Pakistan remittances grow 12% to $3.4 billion in October

Pakistan’s remittances grew for the third consecutive month in October to $3.4 billion, according to the State Bank of Pakistan (SBP) data released on Friday.

The value of remittances increased 7.35% month on month from $3.2 billion in September, and 11.9% year-on-year from $3 billion in the same month last year.

The central bank reported that remittance inflows were primarily driven by workers based in Saudi Arabia and the United Arab Emirates, who collectively contributed over $1.5 billion during the month. Remittances from Saudi Arabia totaled $820.9 million, while those from the UAE stood at $697.7 million.

Other major sources included the United Kingdom, with $487.7 million, and the United States, with $290 million.

Cumulatively, remittances during the first four months of the fiscal year 2025-26 (July to October) reached $12.9 billion, reflecting an 8.9% increase from the $11.85 billion received during the same period last year.

The continued growth in remittances is expected to improve the current account balance, which has been strained by a record trade deficit in October.

Pakistan’s imports increased to a 40-month high in October, ballooning the trade deficit to over $3.2 billion, according to official data. The trade balance – exports minus imports – showed a deficit of $3.21 billion, up 56% from $2.06 billion in October 2024.

The growing remittances will also shore up the State Bank’s foreign exchange reserves

Overseas Pakistanis remain the single most important source of foreign exchange stability for the country. In fiscal year 2024-25 (FY25), remittances surged to a record $38.3 billion, providing critical support to Pakistan’s current account.

In FY25, remittances accounted for nearly 10% of GDP, surpassing exports, which remained below 8%. This highlights Pakistan’s increasing dependence on external inflows rather than sustainable, trade-driven growth.