ISLAMABAD: Pakistan’s overseas workers sent home $3.66 billion in August, extending a strong run of remittance growth and further supporting the country’s external finances, according to data released Wednesday by the State Bank of Pakistan (SBP).
Remittances rose 16.5% from a year earlier and 0.7% from July, when inflows totaled $3.63 billion.
In the first two months of the current fiscal year, remittances climbed 14.7% to $7.3 billion, compared with $6.4 billion in the same period a year earlier.
The increase underscores the continued importance of overseas earnings in bolstering Pakistan’s foreign-exchange position, supporting household incomes and helping finance the country’s external account.
Brokerage firm Topline Securities expects remittances to reach $43.7 billion in the fiscal year ending June 2027.
Saudi Arabia remained the largest source of remittances in August, with inflows of $873 million, up 19% from a year earlier. The monthly figure, however, fell 4% from $914 million in July.
Remittances from the United Arab Emirates rose 17% year-on-year to $750 million and were up 2% from the previous month. Inflows from the UK increased 22% from a year earlier to $564 million.
The US contributed $309 million in August, up 16% from a year earlier, although inflows declined 2% from July.
Remittances from European Union countries rose 7% from the previous month to $496 million, highlighting broad-based growth across major sending corridors.
The sustained increase in remittances comes as Pakistan continues to rely heavily on overseas earnings to strengthen its external position.
Higher formal-channel inflows can also help ease pressure on the rupee and improve liquidity in the foreign-exchange market.