Pakistan’s remittance inflows rose 11.3% year-on-year to reach $3.2 billion in September 2025, according to data compiled by KTrade Research. On a month-on-month basis, entries registered a modest increase of 1.46%.
The rebound was largely due to a 2.6% increase in remittances from GCC countries, which boosted overall inflows during the month. By contrast, remittances from the UK fell 1.9% month-on-month, reflecting softer seasonal trends.
The Pakistani rupee appreciated 0.15% month-on-month, closing at Rs 281.21 per US dollar on October 8, 2025, despite a 1.43% rise in the US dollar index (DXY), according to KTrade.
Analysts attributed the currency’s resilience to strong remittance inflows and stricter administrative measures aimed at narrowing the gap between interbank and open market exchange rates.
Overall, remittances during 1QFY26 increased by 8.4% year-on-year, indicating sustained support from overseas Pakistanis amid gradual economic stabilization.
Read: Remittances fall 2.4% month-on-month due to the drop in the US and the United Arab Emirates
As of early August 2025, Pakistan received $3.14 billion in worker remittances, down 2.4% from July’s inflows of $3.21 billion, as remittances from the United States, the United Arab Emirates and South Korea slowed, although they were partially offset by higher inflows from Saudi Arabia and EU countries.
Remittances from Pakistan grew 7% year-on-year in August, but inflows from key corridors declined, raising concerns about sustainability despite overall growth, according to the State Bank of Pakistan (SBP). Despite strong flows from Saudi Arabia, the United Arab Emirates and the European Union (EU), remittances from the United States fell 13.7% in August compared to last year, highlighting Pakistan’s dependence on Middle Eastern markets to offset weakening contributions from North America.
Pakistan’s remittance growth remained largely dependent on the Gulf region, with Saudi Arabia and the United Arab Emirates alone contributing nearly half of incoming flows in August, exposing the country to risks from economic and policy shifts in recipient countries.
While remittances from Europe increased by 18%, sharp declines from Malaysia (-19%) and South Korea (-11%) indicate volatile inflows from secondary labor markets.
Overall, with an inflow of US$6.4 billion, remittances increased by 7% during the first two months of FY26 compared to US$5.9 billion in the same period last year.
Remittances during August came primarily from Saudi Arabia ($736.7 million), the United Arab Emirates ($642.9 million), the United Kingdom ($463.4 million), and the United States ($267.3 million).
