KARACHI: Pakistan received $3.7 billion in workers’ remittances in August, up 16.5 percent from a year earlier, according to the central bank said on Wednesday, with Saudi Arabia remaining the largest source of inflows.

The increase marks a strong start to the new fiscal year, after Pakistan received a record $41.6 billion in remittances in the fiscal year ended in June. The inflows play an important role in supporting the country’s external account and foreign exchange position.

“Workers’ remittances were recorded at $3.7 billion during August 2026,” the State Bank of Pakistan (SBP) said in a statement. “In terms of growth, remittances increased by 16.5 percent on y/y basis and 0.7 percent on m/m basis.”

Saudi Arabia accounted for $873.5 million of the August inflows, followed by the United Arab Emirates with $749.8 million, the United Kingdom with $563.7 million and the United States with $308.9 million, according to the statement.

Gulf states have traditionally been the largest sources of remittances to Pakistan, reflecting the large number of Pakistani workers employed in the region.

Strong remittance inflows were expected to partly offset a widening trade deficit, although uncertainty in Gulf economies stemming from the regional conflict could weigh future inflows.