KARACHI – Pakistan’s remittance inflows climbed 11.3% year-on-year to $3.2 billion in September 2025, according to data from KTrade Research, reflecting sustained financial support from overseas Pakistanis. On a month-to-month basis, remittances posted a modest increase of 1.46%.
The rise was mainly fueled by stronger inflows from GCC countries, which recorded a 2.6% month-on-month gain, offsetting minor declines from other regions. Remittances from the United Kingdom, however, dipped by 1.9%, largely due to seasonal factors.
Despite a 1.43% increase in the US Dollar Index (DXY), the Pakistani rupee appreciated 0.15% MoM, closing at Rs281.21 per US dollar as of October 8, 2025. Analysts credited the rupee’s stability to robust remittance inflows and strict administrative measures that narrowed the gap between interbank and open market rates.
Cumulatively, during the first quarter of FY26, remittances increased 8.4% year-on-year, signaling consistent overseas inflows amid Pakistan’s gradual economic recovery.
In comparison, remittances in August 2025 totaled $3.14 billion, a 2.4% decline from July’s $3.21 billion, mainly due to reduced inflows from the US, UAE, and South Korea. Nonetheless, stronger receipts from Saudi Arabia and EU countries helped cushion the impact.
According to the State Bank of Pakistan (SBP), Pakistan’s remittance inflows have shown steady growth despite fluctuations from key corridors. With Saudi Arabia and the UAE accounting for nearly half of all remittances, the country remains heavily reliant on the Gulf region, leaving it exposed to potential shifts in those economies.
During August, the main sources of remittances were Saudi Arabia ($736.7 million), the UAE ($642.9 million), the UK ($463.4 million), and the US ($267.3 million). Cumulatively, Pakistan received $6.4 billion during the first two months of FY26, marking a 7% YoY increase compared to $5.9 billion in the same period last year.
