- Overseas workers’ remittances rose 8.41pc, reaching $9.536 billion during July–September FY2026
According to the State Bank of Pakistan (SBP), the overseas workers’ remittances witnessed a rise of 8.41 percent during the first quarter (July-September) of FY2026. Remittance is a method of money transfer that can be sent through wire transfer, draft, cheque, or e-payment mode. These remittances can be utilized for making payments in the form of invoice orders or other kinds. Precisely, the terminology designates the transfer by the person working in one country to his/her family residing in another country.
SBP mentioned an inflow of $9.536 billion was registered during July-September 2025 as against to $8.796 billion during the corresponding period last year. On a year-on-year (YoY) basis, the SBP said workers’ remittances went up by 11.33 percent in September to $3.183 billion from $2.859 billion during the corresponding month last year. It added that remittance inflows during September were chiefly sourced from Saudi Arabia ($750.9 million), the United Arab Emirates ($677.1 million), the United Kingdom ($454.8 million) and the United States ($269 million). It is said that Pakistan received $38.3 billion in remittances during the last fiscal year, adding that remittances were expected to surpass $41 billion in the present fiscal year.
Remittances are a lifeline for millions of households across the country, adding that the continuous increase in remittances strengthened Pakistan’s external accounts. It is important to note that remittances from migrant workers are crucial for the economy of various countries, mainly developing ones, as they boost foreign exchange reserves, reduce poverty, and stimulate economic development. They rise foreign exchange, improve the balance of payments, and make a country less reliant on external borrowing. On a household level, they support consumption, education, and healthcare, and can also be used for entrepreneurship and investment, creating career opportunities and supporting businesses.
The Government of Pakistan received $38 billion in remittances in FY2025 and has set a target of $40 billion for the present fiscal year. Experts believe maintaining FY2025’s inflow level would support exchange rate stability. On the other hand, the global remittances were an estimated $905 billion in 2024, and this amount is expected to grow to $5.4 trillion by 2030. Remittances have become a larger source of external finance for low- and middle-income countries than Foreign Direct Investment (FDI) and Official Development Assistance (ODA), with $656 billion sent to these nations in 2023 alone. The flow of remittances is influenced by factors like the size of the migrant population, the economic conditions in host countries, and the cost of sending money, with many countries in Central America heavily reliant on them. It is also said that remittances are not merely a source of financial inflow but a symbol of national and economic resilience. Experts also recorded that the global remittance market was valued at USD 796.74 Billion in 2023 and is projected to hit USD 1334.69 Billion by 2032, with a compound annual growth rate (CAGR) of 5.9 percent during the forecast period 2024-2032.