Saudi Arabia leads Pakistan’s August worker remittances as inflows hit $3.1 billion

An employee counts Saudi Riyals bills at a money exchange office in central Cairo, Egypt, March 20, 2019. (REUTERS/ file)
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Updated 08 September 2025
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Saudi Arabia leads Pakistan’s August worker remittances as inflows hit $3.1 billion

  • Remittances rose 6.6 percent year-on-year in August, with cumulative inflows for FY 2025–26 at $6.4 billion
  • Inflows from Gulf nations, led by Saudi Arabia and UAE, remain vital for Pakistan’s balance of payments

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.


Sindh assembly passes resolution rejecting move to separate Karachi

Updated 21 February 2026
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Sindh assembly passes resolution rejecting move to separate Karachi

  • Chief Minister Shah cites constitutional safeguards against altering provincial boundaries
  • Calls to separate Karachi intensified amid governance concerns after a mall fire last month

ISLAMABAD: The provincial assembly of Pakistan’s southern Sindh province on Saturday passed a resolution rejecting any move to separate Karachi, declaring its territorial integrity “non-negotiable” amid political calls to carve the city out as a separate administrative unit.

The resolution comes after fresh demands by the Muttahida Qaumi Movement (MQM) and other voices to grant Karachi provincial or federal status following governance challenges highlighted by the deadly Gul Plaza fire earlier this year that killed 80 people.

Karachi, Pakistan’s largest and most densely populated city, is the country’s main commercial hub and contributes a significant share to the national economy.

Chief Minister Syed Murad Ali Shah tabled the resolution in the assembly, condemning what he described as “divisive statements” about breaking up Sindh or detaching Karachi.

“The province that played a foundational role in the creation of Pakistan cannot allow the fragmentation of its own historic homeland,” Shah told lawmakers, adding that any attempt to divide Sindh or separate Karachi was contrary to the constitution and democratic norms.

Citing Article 239 of Pakistan’s 1973 Constitution, which requires the consent of not less than two-thirds of a provincial assembly to alter provincial boundaries, Shah said any such move could not proceed without the assembly’s approval.

“If any such move is attempted, it is this Assembly — by a two-thirds majority — that will decide,” he said.

The resolution reaffirmed that Karachi would “forever remain” an integral part of Sindh and directed the provincial government to forward the motion to the president, prime minister and parliamentary leadership for record.

Shah said the resolution was not aimed at anyone but referred to the shifting stance of MQM in the debate while warning that opposing the resolution would amount to supporting the division of Sindh.

The party has been a major political force in Karachi with a significant vote bank in the city and has frequently criticized Shah’s provincial administration over its governance of Pakistan’s largest metropolis.

Taha Ahmed Khan, a senior MQM leader, acknowledged that his party had “presented its demand openly on television channels with clear and logical arguments” to separate Karachi from Sindh.

“It is a purely constitutional debate,” he told Arab News by phone. “We are aware that the Pakistan Peoples Party, which rules the province, holds a two-thirds majority and that a new province cannot be created at this stage. But that does not mean new provinces can never be formed.”

Calls to alter Karachi’s status have periodically surfaced amid longstanding complaints over governance, infrastructure and administrative control in the megacity, though no formal proposal to redraw provincial boundaries has been introduced at the federal level.