Record Growth in Workers’ Remittances to Pakistan
Workers’ remittances from overseas to Pakistan have shown a remarkable increase in the first four months of the fiscal year 2025-26. The total inflow reached $12.96 billion, with $3.42 billion received specifically in October 2025. This growth highlights the continued importance of remittances as a vital source of foreign exchange for the country.
The State Bank of Pakistan reported that, cumulatively, remittances increased by 9.3 percent during July to October of FY26, reaching $13.0 billion compared to $11.9 billion during the same period last year. This upward trend underscores the resilience of the Pakistani diaspora and their contribution to the national economy.
October 2025 Remittance Inflows
In October 2025, the inflow of $3.42 billion marked an 11.9 percent growth on a yearly basis when compared to the $3.1 billion received in October 2024. Additionally, there was a 7.4 percent increase on a monthly basis, as the inflow for September 2025 stood at $3.2 billion.
These figures reflect a steady flow of funds from overseas workers, which is crucial for supporting households and boosting local consumption.
Key Sources of Remittances
The majority of October 2025 remittances came from several key countries:
- Saudi Arabia: $820.9 million
- United Arab Emirates: $697.7 million
- United Kingdom: $487.7 million
- United States of America: $290.0 million
- Other GCC countries: $342.2 million
Additionally, the European Union contributed significantly, with $457.4 million in remittances. Specific contributions included:
- Italy: $153.5 million
- Spain: $72.4 million
- Germany: $70.8 million
- France: $50 million
- Greece: $47.4 million
Contributions from Other Regions
Beyond the Middle East and Europe, other regions also played a role in the remittance inflows:
- Australia: $87.8 million
- Canada: $68.5 million
- South Africa: $24 million
- Malaysia: $13.9 million
- Norway: $11 million
- South Korea: $9.1 million
- Switzerland: $5.4 million
- Japan: $4.7 million
These contributions highlight the global reach of Pakistan’s expatriate community and their ongoing support for families back home.
Impact on the Economy
The consistent growth in remittances has a significant impact on Pakistan’s economy. These funds help stabilize the currency, support household incomes, and contribute to overall economic development. As the country continues to face various economic challenges, the role of remittances becomes even more critical.
With the current trends indicating a positive trajectory, it is expected that remittances will continue to be a key pillar of Pakistan’s economic strategy in the coming years. The government and financial institutions are likely to focus on maintaining this momentum through policies that encourage and facilitate the transfer of funds from overseas workers.
Overall, the record growth in workers’ remittances demonstrates the strength and resilience of Pakistan’s diaspora, as well as their vital role in supporting the nation’s economic stability.