Saudi Arabia was the largest source of remittances to Pakistan in July 2025, as total inflows reached $3.2 billion — a 7.4% year-on-year increase, the State Bank of Pakistan (SBP) reported on Friday.
Remittances play a critical role in Pakistan’s external finances, providing essential foreign exchange that supports household consumption, narrows the current account deficit, and strengthens the country’s foreign reserves. The steady inflow from Gulf nations — particularly Saudi Arabia and the UAE — continues to be a key driver of economic stability.
According to the SBP, July remittances were primarily sourced from:
Saudi Arabia: $823.7 million
United Arab Emirates: $665.2 million
United Kingdom: $450.4 million
United States: $269.6 million
“Workers’ remittances recorded an inflow of $3.2 billion during July 2025,” the central bank said in its statement.
In the previous fiscal year (FY25), Pakistan received a record $38.3 billion in workers’ remittances — an increase of approximately $8 billion over the 12-month period, surpassing the total of the country's ongoing $7 billion IMF loan program.
By country, FY25 remittance figures were led by:
Saudi Arabia: $9.34 billion
UAE: $7.83 billion
UK: $5.99 billion
USA: $3.72 billion
Remittances from other Gulf Cooperation Council (GCC) countries — excluding Saudi Arabia and the UAE — totaled $3.71 billion, while EU countries contributed $3.53 billion.
Economists emphasize that remittances act as an economic buffer, helping millions of families manage living costs while offering fiscal flexibility to policymakers during periods of restricted external financing. With Middle Eastern labor markets still accounting for the majority of these flows, Pakistan’s remittance outlook remains closely tied to regional labor demand trends.