Remittances rise 7 percent to $3.1 billion in August, Gulf inflows key

By Staff Reporter

KARACHI: Pakistan’s workers’ remittances increased 7% year-on-year to $3.1 billion in August 2025, driven by strong inflows from Gulf countries, the State Bank of Pakistan (SBP) said on Monday.

The central bank reported a 6.6% annual rise from $2.9 billion in August 2024, though remittances fell 2% from July’s $3.2 billion. “Workers’ remittances recorded an inflow of $3.1 billion during August 2025,” the SBP said.

Remittances are a cornerstone of Pakistan’s economy, bolstering foreign exchange reserves, supporting household consumption, and narrowing the current-account deficit. Saudi Arabia led contributions with $736.7 million, down 11% from July but up 3% from $713 million a year earlier. The UAE sent $642.9 million, up 19% from $538 million in August 2024. The UK contributed $463.4 million, up 3% month-on-month but down 2% year-on-year, while the U.S. saw a 17% annual drop to $267.3 million.

For July-August 2025, remittances reached $6.4 billion, a 7% increase from $5.9 billion in the same period last year, the SBP said.

In the last fiscal year, remittances hit a record $38.3 billion, up $8 billion from the prior year, surpassing Pakistan’s $7 billion IMF loan program. Saudi Arabia contributed $9.34 billion, followed by the UAE ($7.83 billion), the UK ($5.99 billion), and the U.S. ($3.72 billion). Other GCC countries added $3.71 billion, with EU nations contributing $3.53 billion.

Economists say remittances stabilise Pakistan’s economy, supporting millions of households and easing external financing pressures. However, heavy reliance on Gulf labor markets highlights the need for diversified income streams to ensure long-term stability.