Saudi Arabia leads Pakistan’s July worker remittances as inflows hit $3.2 billion

A man walks past a currency exchange shop in Rawalpindi on June 12, 2024. (AFP/File)
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Updated 08 August 2025
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Saudi Arabia leads Pakistan’s July worker remittances as inflows hit $3.2 billion

  • Steady inflows from Gulf economies, led by Saudi Arabia and UAE, have remained crucial for Pakistan’s balance of payments
  • According to State Bank of Pakistan, Saudi Arabia led all contributors during FY25, with remittances totaling $9.34 billion

KARACHI: Saudi Arabia was the top source of Pakistani workers’ remittances in July, as overall inflows reached $3.2 billion, up 7.4 percent year-on-year, the State Bank of Pakistan (SBP) said on Friday.

Remittances are a key pillar of Pakistan’s external finances, providing hard currency that supports household consumption, helps narrow the current-account gap and bolsters foreign exchange reserves. The steady pipeline from Gulf economies, led by Saudi Arabia and the UAE, has remained crucial for Pakistan’s balance of payments.

The SBP said July inflows were “mainly sourced from Saudi Arabia ($823.7 million), United Arab Emirates ($665.2 million), United Kingdom ($450.4 million) and United States of America ($269.6 million).”

“Workers’ remittances recorded an inflow of $ 3.2 billion during July 2025,” the central bank said in a statement.

Pakistan received a record $38.3 billion in workers’ remittances during the last fiscal year, reporting an increase of about $8 billion over a 12-month period that exceeds the country’s ongoing $7 billion International Monetary Fund (IMF) loan program.

According to the State Bank of Pakistan, Saudi Arabia led all contributors during FY25, with remittances totaling $9.34 billion, followed by the United Arab Emirates at $7.83 billion, the United Kingdom at $5.99 billion and the United States at $3.72 billion.

Remittances from Gulf Cooperation Council (GCC) countries excluding Saudi Arabia and the UAE totaled $3.71 billion, while EU countries contributed $3.53 billion.

Economists say remittances function as a stabilizer for Pakistan’s economy, helping millions of households manage expenses while giving policymakers breathing room during periods of tight external financing conditions. With traditional sources in the Middle East still accounting for the bulk of transfers, the trajectory of regional labor demand remains central to Pakistan’s outlook on remittance flows.


Afghanistan fires at Pakistani jets over Kabul as conflict intensifies

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Afghanistan fires at Pakistani jets over Kabul as conflict intensifies

  • Violence follows ‌air strikes inside Afghanistan this week Pakistan says ​targeted militant infrastructure
  • Pakistan says operation against Afghan forces ongoing, security forces destroyed Afghan posts, camps

KABUL: Afghanistan said it was firing at Pakistani jets in Kabul after blasts and gunfire rocked the capital on Sunday, compounding instability in a region rattled by US–Israeli strikes on Iran and retaliatory attacks on US targets in Gulf states.

The Taliban-ruled state has suffered Pakistani strikes against government installations over the past week following accusations, which it denies, that it harbors militants.

The heaviest fighting in years between the neighbors has raised fears of a protracted conflict ‌along their 2,600-km (1,615-mile) ‌border, with several countries including Qatar and Saudi ​Arabia ‌calling ⁠for restraint ​and ⁠offering to help mediate a ceasefire.

Explosions echoed across parts of Kabul before sunrise, followed by bursts of gunfire, a Reuters witness said. It was not clear what had been targeted or whether there were casualties.

Taliban administration spokesperson Zabihullah Mujahid said the sounds were the result of Afghan forces targeting Pakistani aircraft over the capital.

“Air defense attacks were carried out in Kabul against Pakistani aircraft. Kabul residents should not be concerned,” Mujahid ⁠said.

Pakistan’s prime minister’s office, information ministry and military did not ‌respond to requests for comment.

The violence follows ‌air strikes inside Afghanistan this week that Pakistan said ​targeted militant infrastructure. Afghanistan described the ‌strikes as a violation of sovereignty and announced retaliatory operations along their shared ‌border.

Iran, which shares borders with both Afghanistan and Pakistan, had offered to help facilitate dialogue before itself coming under attack on Saturday from Israel and the US bent on diminishing Iran’s military capability.

ACCUSATION AND ESCALATION

Pakistan has said Afghanistan harbors Tehreek-e-Taliban Pakistan (TTP) militants, which it ‌said are waging an insurgency inside Pakistan.

Afghanistan has denied the accusation, saying it does not allow Afghan territory to be ⁠used against other ⁠countries and that Pakistan’s security challenges are an internal matter.

Pakistani security sources have said operation “Ghazab Lil Haq,” meaning “Wrath for the Truth,” was ongoing and that Pakistani forces had destroyed Afghan posts and camps.

Both sides have reported heavy losses, issuing differing casualty figures for each other.

Reuters could not independently verify the claims.

Diplomatic efforts have intensified, with Saudi Arabia, Russia, China, the European Union and United Nations urging restraint and calling for talks.

The US said it supports Pakistan’s right to defend itself.

Pakistan Defense Minister Khawaja Muhammad Asif described the fighting as “open war.”

Afghanistan Interior Minister Sirajuddin Haqqani said the conflict would be “very costly.” He said only ​front-line forces were engaged in fighting that ​the country has yet to fully deploy its military.