Pakistan received $3.2 billion in workers’ remittances in September 2025, according to data released by the State Bank of Pakistan (SBP). The inflow reflects an 11.3% year-on-year (YoY) increase compared to $2.9 billion in September 2024, and a 1% month-on-month (MoM) rise from August 2025’s $3.1 billion.
Cumulatively, remittances during the first quarter of FY26 (July–September 2025) reached $9.5 billion, up 8.4% from $8.8 billion in the corresponding period of FY25. This sustained growth continues to underpin Pakistan’s external sector stability, providing critical foreign exchange support amid ongoing fiscal pressures and limited export diversification.
Economic and Policy Implications
Remittances remain one of Pakistan’s most stable external financing sources, offsetting the trade deficit and easing pressure on the rupee. They also serve as a key driver of domestic consumption, particularly among remittance-dependent households, effectively acting as a social stabilizer during inflationary periods.
Advisor to the Finance Minister, Khurram Schehzad, projected that annual remittances could exceed $41 billion in FY26, surpassing the $38.3 billion received in FY25. He emphasized that remittances “serve as a lifeline for millions of households and a pillar of economic resilience,” reflecting both the diaspora’s confidence and the effectiveness of formal remittance channels.
Institutional Strengthening of the Remittance Ecosystem
The SBP highlighted ongoing efforts under the Pakistan Remittance Initiative (PRI) — launched in 2009 to promote remittance inflows through regulated financial channels. The number of financial institutions (FIs) integrated with the PRI network has expanded from 25 in 2009 to over 50 in 2024, encompassing conventional banks, Islamic banks, microfinance banks, and exchange companies.
Additionally, the participation of Electronic Money Institutions (EMIs) has broadened the ecosystem’s reach, allowing international remitters to send funds through digital pathways. The number of international partners linked with Pakistani institutions has grown almost tenfold — from 45 in 2009 to around 400 today — underscoring Pakistan’s increasing integration with global remittance corridors.
Geographic Breakdown of Inflows
- Saudi Arabia remained the dominant source, contributing $751 million, marking a 10% YoY and 2% MoM rise.
- United Arab Emirates (UAE) inflows surged 7% YoY to $677 million, up from $563 million in September 2024.
- United Kingdom remittances totaled $455 million, slightly down 2% MoM but 7% higher YoY.
- United States inflows slipped 3% YoY to $269 million.
- European Union (EU) countries collectively contributed $424 million.
Analytical Outlook
The upward trend signals a renewed confidence among overseas Pakistanis, likely supported by improved digital remittance channels, competitive exchange rates, and seasonal demand during Q1 of the fiscal year. However, sustaining this growth will depend on macroeconomic stability, policy continuity, and continued trust in the banking system.
If current momentum persists, Pakistan could witness record-high remittance inflows, providing a critical buffer against external vulnerabilities and supporting the government’s broader digital and financial inclusion agenda.