Workers remittances for July 2025 up by 7.4pc on yearly basis

Remittances from overseas Pakistani workers went up by 7.4 per cent on year-on-year basis for the month of July, the State Bank of Pakistan (SBP) said on Friday.

Every month, millions of overseas Pakistanis send money home. These remittances are now a cornerstone of Pakistan’s balance-of-payments, hitting a record $4.1 billion during March alone.

“Workers’ remittances recorded an inflow of $3.2bn during July 2025,” a press release by the SBP read.

According to the data released by the bank, the inflows were mainly sourced from Saudi Arabia ($823.7 million), United Arab Emirates ($665.2m), United Kingdom ($450.4m) and the US ($269.6m).

Last month, SBP’s data showed that workers’ remittances increased by 26.6pc to hit a record $38.3bn during the fiscal year 2025 as compared to the corresponding period of last year.

It added that the workers’ remittances went up by 7.9pc to $3.406bn in June 2025, compared to $3.158bn during the same month last year.

FY25 proved to be a relatively successful year for the government on the external front, with expectations of a current account surplus and the SBP exceeding its foreign exchange reserves target of $14bn by closing at $14.5bn.

Remittances played a crucial role in maintaining exchange rate stability, enabling the central bank to accumulate reserves and make partial repayments of its external debt. While official figures have not been disclosed, interbank currency dealers estimate the SBP purchased over $8bn from the banking market during the year.

A study by the Asian Development Bank last year found that Pakistani migrants tend to remit more when economic conditions are improving back home and when there is a positive association between remittances and domestic economic activity.

The study’s findings indicate that domestic and abroad economic activity is positively associated with remittances to Pakistan.

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