Pakistan’s remittance inflows rose by 11.3% year-on-year to reach $3.2 billion in September 2025, according to data compiled by KTrade Research. On a month-on-month basis, inflows recorded a modest 1.46% increase.
The uptick was largely driven by a 2.6% rise in remittances from GCC countries, which bolstered overall inflows during the month. In contrast, remittances from the UK slipped by 1.9% month-on-month, reflecting softer seasonal trends.
The Pakistani rupee appreciated by 0.15% MoM, closing at Rs281.21 per US dollar as of October 8, 2025, despite a 1.43% rise in the US Dollar Index (DXY), according to KTrade.
Analysts attributed the currency’s resilience to strong remittance inflows and tighter administrative measures aimed at narrowing the gap between the interbank and open market exchange rates.
Cumulatively, remittances during 1QFY26 climbed 8.4% YoY, indicating sustained support from overseas Pakistanis amid gradual economic stabilisation.
Read: Remittances slip 2.4% MoM on US, UAE dip
Earlier in August 2025, Pakistan received $3.14 billion in workers’ remittances, which was 2.4% lower than July inflows of $3.21 billion, as remittances from the US, the UAE and South Korea slowed down, though they were partially offset by stronger receipts from Saudi Arabia and EU countries.
Pakistan’s remittances grew 7% year-on-year in August, but inflows from key corridors declined, raising concerns about sustainability despite overall growth, according to the State Bank of Pakistan (SBP). In spite of robust inflows from Saudi Arabia, the UAE and the European Union (EU), remittances from the United States fell 13.7% in August compared to last year, highlighting Pakistan’s reliance on Middle Eastern markets to offset the weakening North American contributions.
Pakistan’s remittance growth remained heavily dependent on the Gulf region, with Saudi Arabia and the UAE alone contributing nearly half of inflows in August, exposing the country to risks of economic and policy shifts in host countries.
While remittances from Europe surged 18%, sharp declines from Malaysia (-19%) and South Korea (-11%) indicate volatile inflows from secondary labour markets.
Cumulatively, with an inflow of $6.4 billion, the remittances increased 7% during the first two months of FY26 compared to $5.9 billion in the same period of last year.
Remittances during August were mainly sourced from Saudi Arabia ($736.7 million), the United Arab Emirates ($642.9 million), the United Kingdom ($463.4 million) and the US ($267.3 million).
