Pakistan’s remittances jump 11% in Sept, hitting $3.2B

Remittances sent home by overseas Pakistani workers rose 11.3% year-over-year in September, reaching $3.2 billion, according to figures released by the State Bank of Pakistan.

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 $1.4 billion during the month. Remittances from Saudi Arabia totaled $750.9 million, while those from the UAE stood at $677.1 million.

Other major sources included the United Kingdom, with $454.8 million, and the United States, with $269 million.

Cumulatively, remittances during the first quarter of the fiscal year 2025-26 (July to September) reached $9.5 billion, reflecting an 8.4% increase from the $8.8 billion received during the same period last year.

Economists say the continued recovery in remittance inflows may be linked to improving economic conditions in the Gulf region and policy measures introduced to promote the use of formal banking channels.

“This uptick is a positive signal for Pakistan’s external account, especially as the country continues to face balance of payments challenges,” said an analyst. “Sustained growth in remittances can ease pressure on the rupee and support foreign exchange reserves.”

Remittances are a critical source of foreign currency for Pakistan, second only to exports. The inflows play a significant role in supporting household spending, bolstering the national economy, and narrowing the country’s current account deficit.