Pakistan Records $3.1 Billion in Remittances for August 2025

September 06, 2025 – Karachi:

The State Bank of Pakistan (SBP) reported that overseas workers’ remittances reached $3.1 billion in August 2025, highlighting the critical role expatriates continue to play in supporting Pakistan’s economy.

On a year-on-year (YoY) basis, remittances grew by 7%, compared to $2.9 billion in August 2024. However, on a month-on-month (MoM) basis, inflows recorded a slight dip of 2% compared to July 2025, when they stood at $3.2 billion.

Economists note that despite the marginal monthly decline, the inflows remain well above the long-term average, reflecting the continued trust of overseas Pakistanis in sending funds through formal banking channels.

Remittances are a vital lifeline for Pakistan’s economy, serving multiple purposes:

·        Stabilizing the external account by helping finance imports and narrowing the current account deficit.

·        Supporting foreign exchange reserves, which provides the State Bank with breathing space to manage currency stability.

·        Boosting household incomes, especially for remittance-dependent families, thereby stimulating consumption and overall economic activity.

Market observers suggest that the consistent growth in remittances comes at a time when Pakistan faces external financing pressures and a heavy debt repayment schedule. The inflows ease some of this burden while also supporting the Pakistani rupee’s recent upward trajectory in the inter-bank market.

Looking ahead, analysts expect inflows to remain strong, particularly due to the upcoming festive and back-to-school season in the Gulf and Western countries, where a significant portion of Pakistani expatriates reside.

This steady stream of remittances continues to act as a pillar of resilience for Pakistan’s financial system, underscoring its importance in both the short- and long-term economic outlook.