Pakistan receives $3.2bn in remittances in July 2025 – Markets

Remittance inflow since Jan 2024

The inflow of overseas workers’ remittances into Pakistan stood at $3.2 billion in July 2025, the State Bank of Pakistan (SBP) data showed on Friday.

Remittances increased by 7.4% year over year, compared to $3 billion recorded in the same month last year. On a monthly basis, remittances were down 6%, compared to $3.4 billion in June.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing the disposable incomes of remittance-dependent households.

“Remittance inflows have improved due to stricter foreign exchange regulations and enhanced monitoring of the open market by law enforcement, which helped reduce the gap between interbank and open market rates,” Waqas Ghani, Head of Research at JS Global, told media.

This has incentivised senders to use formal channels, boosting the monthly run rate, he maintained.

The analyst shared that the monthly remittance run rate has increased from $2.5 billion in FY24 to $3.2 billion in FY25.

Meanwhile, Sana Tawfik of Arif Habib Limited said remittance inflows were higher in June due to the Eid factor, which has since normalised, leading to a month-on-month decline.

“This is the highest remittance inflow recorded in July,” she informed, attributing the increase to a rise in the number of workers going abroad, stable exchange parity and a narrow spread between the interbank and open market.

“We expect remittance inflows to reach $39-40 billion in FY26, which is in line with SBP’s projections,” added Tawfik.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in July 2025 as they sent $823.7 million during the month. The amount was nearly 8% higher than the $760 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) inched up by 9% on a yearly basis, from $611.2 million to $665.2 million in July. On a monthly basis, remittances dropped 7%, as compared to $717.2 million reported in June.

Remittances from the United Kingdom amounted to $450.4 million during the month, down by 16% compared to $537.6 million in June 2025. YoY inflows from the UK improved by 2%.

Overseas Pakistanis in the US sent $269.6 million in July 2025, a MoM decrease of 4% and 10% YoY.