July workers’ remittances rise 7.4pc YoY

KARACHI: Workers’ remittances maintained their growth momentum in the new fiscal year (FY26), rising 7.4 percent year-on-year in July, reflecting sustained inflows from overseas Pakistanis.

The State Bank of Pakistan (SBP) on Friday reported that Pakistan has received inflows of workers’ remittances amounted to $3.214 billion during July 2025 as against $2.994 billion in July 2024, showing an increase of $220 million.

However, home remittances in the first month of this fiscal year remain some 5.6 percent lower than June 2025, in which the country received inflows worth $3.406 billion.

During the last fiscal year, workers’ remittances remained instrumental as they more than offset the widening trade deficit. Workers’ remittances posted a robust growth of 27 percent in last fiscal year (FY25) over the previous fiscal year (FY24).

Overall, Pakistan received highest ever $38.3 billion home remittances during FY25 as against $30.25 billion in FY24. Workers’ remittances remained instrumental, as they more than offset the widening trade deficit.

Governor SBP, Jameel Ahmed, expressed confidence that home remittances will continue to grow in the current fiscal year. However, he noted that the pace of growth is expected to slow in the coming months due to the high base effect and the recent rationalization of home remittance incentive schemes.

According to the SBP Governor, the target for home remittances in the current fiscal year has been set at $40 billion, compared to $38.3 billion achieved in the previous fiscal year.

Remittance inflows in July 2025 were led by Saudi Arabia, which contributed $823.7 million, an increase of 8.4 percent. Inflows from the United Arab Emirates (UAE) rose 8.8 percent to $665.2 million in the first month of this fiscal year, compared to $611 million in the same month last fiscal year.

Remittances from the United Kingdom (UK) grew two percent to $450.4 million in July 2025 up from $443 million in July 2024. However, inflows from the United States of America (USA) fell 10 percent to $269.6 million in the first months of FY26.