Overseas Pakistanis sent a strong $3.63 billion in remittances to Pakistan in July, giving the new fiscal year a robust start despite continued uncertainty in the Middle East.
According to monthly data released by the State Bank of Pakistan (SBP), remittances increased by 13% year-on-year and 4.5% compared with June, highlighting continued support from Pakistanis living abroad.
The July inflow marks a significant increase from the same month last year and comes as overseas Pakistanis continue to play an important role in supporting Pakistan's external sector.
Experts said the situation in the Middle East has not significantly affected remittance inflows, with Pakistanis living around the world, particularly in Gulf countries, continuing to send money home.
The strong performance also reflects continued confidence among overseas Pakistanis and is expected to contribute to economic stability.
Saudi Arabia remains largest source
Saudi Arabia remained the largest source of remittances to Pakistan in July, with overseas Pakistanis in the kingdom sending $914 million.
The United Arab Emirates followed with $733 million, while Pakistanis in the United Kingdom sent $555 million during the month.
Pakistanis living in the European Union transferred $460 million home, while another $336 million came from other Gulf countries.
Remittances from the United States stood at $320 million in July.
The latest data showed strong increases from several major remittance corridors.
According to the figures, the UK accounted for 23% of the increase, while the US contributed 18%. Remittances from Saudi Arabia and the UAE also recorded increases of more than 11% each, while inflows from the European Union increased by 9%.
Remittances from all major sources recorded notable growth on a monthly basis, supporting the overall rise in July inflows.
Pakistan sets $44bn remittance target
The State Bank of Pakistan has set a target of $44 billion in remittances for fiscal year 2027.
Pakistan received a record $41.6 billion in remittances during the previous fiscal year, setting a strong base for the current year's target.
The strong opening month is being viewed as a positive sign for Pakistan's external sector and economic stability, while also underscoring the continued contribution of overseas Pakistanis to the national economy.
PM Shehbaz welcomes increase
Prime Minister Shehbaz Sharif expressed satisfaction over the $3.6 billion received in remittances during July.
The prime minister said it was encouraging that remittances increased by 13% year-on-year and 4.5% month-on-month, praising overseas Pakistanis for their continued contribution to the country's economy.
He described the positive role of overseas Pakistanis in Pakistan's economic stability and development as commendable.
Shehbaz said overseas Pakistanis are a valuable part of the country's national economic stream, highlighting their importance to Pakistan's financial and economic outlook.
The continued rise in workers' remittances provides an important source of foreign exchange for Pakistan and strengthens the country's external position.
