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.
