KARACHI — Overseas Pakistanis sent home a record $3.21 billion in July 2025, marking a 7.4% increase from $2.99 billion in July 2024 and a staggering 47.6% surge compared to July 2023, according to provisional data from the State Bank of Pakistan (SBP).
The rise comes on the back of more than two million Pakistanis seeking work abroad in recent years amid political instability and economic uncertainty at home. Economists say this migration wave has helped fuel a strong rebound in remittances after the slowdown in FY23.
Saudi Arabia led all markets with $823.7 million, up 8.4% year-on-year. The UAE followed at $665.2 million, rising 8.8%, although this figure masked sharp differences within the country — Abu Dhabi’s inflows jumped 37% while Dubai’s fell 3.1% to $456.8 million. Other GCC states contributed $296 million, up 2.6%, with Oman showing a 7.1% rise but Kuwait dropping 11.1% to $62.5 million.
The United Kingdom sent $450.4 million in July, up 1.6%, while the European Union’s $424.4 million marked a 21% increase. Italy (+23.6% to $130 million), Spain (+35.7% to $72.7 million), and Ireland (+48% to $19.4 million) recorded particularly strong gains.
However, not all corridors performed well. US inflows fell 10.2% to $269.6 million, while Malaysia dropped 17% to $13.4 million. Japan declined 7.5% to $4.5 million, and South Korea fell 9.7% to $9 million. Economists warn that Pakistan’s heavy reliance on a handful of countries — with Saudi Arabia, UAE, UK, and US making up over two-thirds of all remittances — leaves it vulnerable to external shocks.
July’s inflows were slightly above the FY26 monthly average of $3.19 billion, suggesting a strong start to the fiscal year. Analysts credit the record figure to stable exchange rates, seasonal Eid-related transfers, and improved banking channels encouraging the use of formal remittance systems.
Still, experts say Pakistan must diversify its remittance sources and invest in upskilling workers to maintain growth. The GCC’s dominance, while currently beneficial, is tied to oil revenues and labour policies — both of which can shift quickly.
