By Staff Reporter
KARACHI: Pakistan’s overseas workers’ remittances surged to $3.2 billion in September 2025, reflecting robust growth in inflows that serve as a critical lifeline for the nation’s economy, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The figure marks an 11.3% increase from the $2.9 billion recorded in the same month a year earlier, underscoring the growing reliance on expatriate funds to stabilise the country’s external account.
On a month-over-month basis, remittances edged up 1% from $3.1 billion in August, signalling steady momentum. For the first three months of the fiscal year 2026 (July-September), inflows reached $9.5 billion, an 8.4% jump from $8.8 billion in the same period of fiscal year 2025.
The uptick highlights the sustained contribution of remittances to Pakistan’s economic activity, supporting household incomes and fueling consumption in a nation grappling with persistent balance-of-payments pressures.
Remittances have long been a cornerstone of Pakistan’s economy, providing a buffer against trade deficits and supplementing disposable incomes for millions of households. The SBP has prioritised channelling these funds through formal financial networks, a strategy that has gained traction through the Pakistan Remittance Initiative (PRI), launched in 2009.
The central bank noted last month that the PRI’s efforts have expanded the network of financial institutions facilitating remittances from roughly 25 in 2009 to more than 50 in 2024. This network now encompasses conventional and Islamic banks, microfinance institutions, and exchange companies. The inclusion of Electronic Money Institutions (EMIs), which partner with banks to process remittances, has further broadened access. The number of international entities tied to the PRI has soared from 45 in 2009 to approximately 400 today, reflecting Pakistan’s push to modernise and formalise remittance flows.
A regional breakdown of the September data reveals Saudi Arabia as the largest source of remittances, with overseas Pakistanis sending $751 million, a 10% increase from $684 million a year earlier and a 2% rise from August 2025. The United Arab Emirates followed, with inflows climbing 7% year-on-year to $677 million from $563 million in September 2024.
The United Kingdom contributed $455 million, a 7% increase from the same month last year, though inflows dipped 2% from August’s $463 million. Remittances from the United States, however, saw a 3% year-on-year decline, totaling $269 million. Meanwhile, European Union countries sent $424 million in September, adding to the diversified sources of inflows.
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