Saudi Arabia, UAE contribute 45% of remittances sent to Pakistan in August

In this picture taken on July 22, 2019, customers exchange foreign currency at a money changer in Karachi. (AFP/File)
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Updated 14 September 2022
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Saudi Arabia, UAE contribute 45% of remittances sent to Pakistan in August

  • Pakistan received $2.7 billion remittances in August, posting a growth of 7.9 percent on month-on-month and 1.5 percent on annual bases 
  • Financial expert hopes that inflows from Saudi Arabia and other Gulf countries will continue to rise amid higher oil prices 

KARACHI: Saudi Arabia and the United Arab Emirates (UAE) contributed 45 percent to the overall remittances sent to Pakistan in August, the Pakistani central bank data showed on Tuesday, as the two brotherly nations continue to play a leading role in supporting the South Asian country’s economy. 

Pakistan received a total of $2.7 billion remittances in August, posting a growth of 7.9 percent on a month-on-month (MoM) and by 1.5 percent on an annual basis. 

Around 2 million Pakistanis, who live and work in Saudi Arabia, remitted $691.8 million, while Pakistani expats in the UAE remitted $531.4 million. The total inflows from both Gulf countries stood at $1.22 billion, making 44.5 percent of the overall remittances received during the month of August. 

“The contribution from Saudi Arabia and UAE which are the major remittance contributors is increasing nowadays as job growth is higher in the Middle East and more people are moving to the avail the opportunities,” Tahir Abbas, research head at the Karachi-based Arif Habib Limited brokerage firm, told Arab News. 

Pakistani workers remitted $5.25 billion during the first two months of the current fiscal year starting since July 1, which shows a negative growth of around 3 percent as compared to the same period of last fiscal year. 

Financial experts say the country’s annual remittance growth would remain flat around the previous year’s $31.23 billion. They, however, believe inflows from Saudi Arabia and other Middle Eastern countries will continue to grow. 

“In Gulf countries, specifically in Saudi Arabia, UAE, Qatar and Bahrain, a lot of jobs are available due to the elevated oil prices for the last one and a half years,” Abbas said. 

“The oil-rich Middle Eastern countries have posted fiscal surpluses, therefore they all are going for expansion as their economies are much stronger due to higher oil prices so they need workers and professionals.” 

Pakistan desperately needs dollar inflows amid fast depleting foreign exchange reserves that stand at $8.7 billion — barely enough to cover 40 days of imports. 

The depleting reserves, despite the transfer of $1.16 billion from the International Monetary Fund (IMF), continue to cause pressure on the national currency. 

The Pakistani currency on Tuesday lost 0.91 percent of its value as the US dollar closed at Rs231.92 in the interbank market. 

The greenback was trading at Rs238 for selling, compared to Rs236 of the previous day, in the open market, according to the State Bank of Pakistan and the Exchange Companies Association of Pakistan. 


Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

Updated 25 February 2026
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Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

  • Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
  • Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy 

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy. 

Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.

Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties. 

“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad. 

The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”

Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors. 

“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said. 

Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.

On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”

“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said. 

He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests. 

Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability. 

“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.