Workers’ remittances sent by overseas Pakistanis rose 13% year over year to USD 3.63 billion in July, marking a strong start to the new fiscal year and providing a key source of foreign exchange, according to State Bank of Pakistan data.
Remittances stood at USD 3.215 billion in July 2025. The July 2026 inflow was also 5% higher than the USD 3.475 billion received in June.
Saudi Arabia remained the largest source of remittances, with inflows rising 11% year over year to USD 914 million in July from USD 824 million a year earlier. The United Arab Emirates followed with USD 737 million, also up 11%.
Remittances from the United Kingdom increased 23% year over year to USD 555 million, while inflows from the United States rose 18% to USD 317 million.
Pakistan received USD 462 million from European Union countries in July, up 9% from a year earlier. Remittances from other Gulf Cooperation Council countries increased 14% to USD 336 million.
Inflows from Canada rose 9% to USD 64 million, while those from Australia increased 6% to USD 83 million. Malaysia contributed USD 13 million, broadly unchanged from a year earlier.
The latest monthly inflow was above the FY26 average of about USD 3.4 billion, according to AKD Securities data.
The strong start to FY27 follows a record year for remittances. Pakistan received USD 41.6 billion from overseas workers during FY26, up 8.6% from USD 38.3 billion in FY25, according to the State Bank of Pakistan.
The State Bank expects workers’ remittances to grow from last year and continue financing a large part of the projected increase in the trade deficit. It has also targeted foreign exchange reserves of USD 20.20 billion by the end of December 2026, assuming the realization of planned official inflows and some improvement in private flows.
The rise in remittances has been supported by greater use of formal banking channels and incentives encouraging overseas Pakistanis to send money through official channels.
Comments
See what people are discussing