KARACHI: Remittances sent home by overseas Pakistanis rose 14 percent to $10.9 billion in the first quarter of the current fiscal year, with Saudi Arabia remaining the largest source, the central bank said on Friday, providing a boost to the country’s foreign exchange inflows as it navigates economic pressures and external financing needs.

The July-September inflows compared with $9.5 billion in the same period last year, according to the State Bank of Pakistan (SBP). Remittances are a crucial source of foreign exchange for the South Asian country, helping finance imports, support household incomes and ease pressure on its external accounts.

The increase comes as Pakistan implements a $7 billion International Monetary Fund loan program aimed at stabilizing its economy and rebuilding fiscal and external buffers. The country relies heavily on remittances from millions of Pakistanis working abroad, particularly in the Gulf states.

“Cumulatively, workers’ remittances increased by 14.0 percent to $ 10.9 billion during Q1 FY27, compared to $ 9.5 billion received during the same period last year,” the central bank said in a statement.

Remittances totaled $3.6 billion in September, up 12.7 percent from a year earlier but down 1.9 percent from August, the SBP said.

Saudi Arabia remained the largest source of remittances in September, with Pakistani workers sending home $899.1 million, followed by the United Arab Emirates at $748.5 million.

Inflows from the United Kingdom stood at $515.1 million, while those from the United States totaled $305.9 million, according to the central bank.

The four countries together accounted for nearly $2.47 billion of the month’s remittances, highlighting the importance of Gulf economies and Western labor markets to Pakistan’s external finances.

Pakistan received a record $41.6 billion in workers’ remittances during the fiscal year that ended in June 2026, compared with $38.3 billion a year earlier, according to central bank data.

The sustained inflows have helped cushion Pakistan’s external accounts, although the country continues to face pressure from its import bill and debt repayment obligations.

Pakistan recorded a current account deficit of $139 million in fiscal year 2025-26, compared with a surplus of about $1.84 billion in the preceding year, according to official figures.

Remittances remain a key source of foreign currency for Pakistan, where money sent by overseas workers helps households meet everyday expenses and provides support to the broader economy.