Remittances from overseas Pakistanis rise 13 percent to $3.6 bn in July, boosting foreign‑exchange reserves.

KARACHI: Remittances sent by overseas Pakistanis during the first month of the current fiscal year reached $3.6 bn in July, according to data released by the State Bank of Pakistan on Monday. The inflows were 13 % higher in July than in the same month of the previous fiscal year, and month‑on‑month growth was 4.5 %. These figures meet the government’s expectations based on its $44 bn remittance target for FY27. Remittances from the Middle East remained robust even as war continues in the region. Despite reports that some Pakistanis left the UAE, remittance levels from the Emirates actually increased in FY26. Currency experts said thousands of Pakistanis migrated to the Middle East for jobs, primarily to Saudi Arabia, and that the government is likely to meet the FY27 target. The inflows have helped the State Bank of Pakistan strengthen its foreign‑exchange reserves, which are mostly composed of deposits placed by Saudi Arabia and China—together accounting for more than 50 %. While the volume of remittances grew, Pakistan’s current account stayed negative, with a trade deficit of over $39 bn consuming much of the inflows. The year began with a $3.5 bn trade deficit, raising concerns among stakeholders that a weaker dollar fuels higher imports and an unsustainable deficit. Pakistan has not increased exports to China, which is the country’s largest trading partner. The trade balance remains largely in China’s favour, and under‑invoicing and smuggling from China are also high. Major corridors of workers’ remittances in July were Saudi Arabia ($913.9 m), the UAE ($737.3 m), the UK ($555.5 m), the US ($317.2 m), and EU countries ($452 m).