Worker remittances climb 7.4 percent to $3.2 billion in July

By Staff Reporter

KARACHI: Remittances from overseas Pakistani workers rose 7.4 percent year-on-year to $3.2 billion in July, the State Bank of Pakistan (SBP) said on Friday.

“Workers’ remittances recorded an inflow of $3.2bn during July 2025,” the SBP said in a statement.

The bulk of the funds came from Saudi Arabia ($823.7 million), the United Arab Emirates ($665.2 million), the United Kingdom ($450.4 million), and the United States ($269.6 million), according to central bank data.

The July increase follows a record-breaking fiscal year 2025, with remittances surging 26.6 percent to $38.3 billion compared to the previous year. June alone saw inflows rise 7.9 percent to $3.406 billion from $3.158 billion in June 2024, while March hit an all-time high of $4.1 billion.

These inflows have been crucial to Pakistan’s balance-of-payments stability, enabling the SBP to exceed its foreign exchange reserves target of $14 billion, closing FY25 at $14.5 billion.

Interbank currency dealers estimate the central bank purchased over $8 billion from the banking market during the year, supporting partial repayments of external debt.

The rise in remittances has helped stabilise the exchange rate and contributed to expectations of a current account surplus in FY25. A 2024 Asian Development Bank study found that Pakistani migrants tend to send more money home when domestic economic conditions improve, with a positive link between remittances and economic activity in Pakistan.