Remittances Boost Pakistan’s Economy as Major Overseas Workers Send More Money Home
ISLAMABAD — Pakistan has kicked off the new fiscal year 2025-26 on a positive note with a significant rise in remittances, the central bank announced. The inflows mainly came from key overseas employment hubs, with Saudi Arabia leading the way, contributing $823.7 million. The United Arab Emirates followed with $665.2 million, the United Kingdom with $450.4 million, and the United States with $269.6 million.
This increase in remittances provides vital support to Pakistan’s external account and helps bolster foreign exchange reserves, easing some pressure on the economy.
The State Bank of Pakistan (SBP) credited government policies promoting formal remittance channels and the growing use of digital money transfer platforms for this encouraging trend.
Meanwhile, new data from the Pakistan Bureau of Statistics (PBS) revealed a widening trade deficit, which grew 16 percent to $2.75 billion in July 2025 compared to June.
Despite this, exports showed a healthy gain of nearly 17 percent in July compared to the same month last year, reaching $2.697 billion. However, imports surged by over 29 percent to $5.449 billion, up from $4.216 billion last July, contributing to the broader trade imbalance.
As Pakistan navigates these economic challenges, the steady flow of remittances continues to play a crucial role in stabilizing the country’s financial outlook.
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