KARACHI: Saudi Arabia remained the leading source of remittances to Pakistan in August 2025, sending $736.7 million of the $3.1 billion total received during the month, the State Bank of Pakistan said on Monday.
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.
Pakistan has received a cumulative $6.4 billion in workers’ remittances during the first two months of fiscal year 2025–26 (July-August), marking a 7.0 percent increase from $5.9 billion in the same period last year.
“Workers’ remittances recorded an inflow of $ 3.1 billion during August 2025,” the central bank said. “In terms of growth, remittances increased by 6.6 percent on year-on-year basis.”
The bulk of these inflows originated from Saudi Arabia ($736.7 million), followed by the UAE ($642.9 million), the UK ($463.4 million) and the US ($267.3 million).
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 — exceedng 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.











