Pakistan’s August remittances rise 16.5%

Pakistan’s August remittances rise 16.5%

KARACHI: Pakistan received $3.7 billion in workers’ remittances from overseas Pakistanis in August 2026, marking a 0.7% increase from the previous month and a strong 16.5% rise compared with August 2025, according to the State Bank of Pakistan (SBP).

Despite ongoing tensions and conflict in the Middle East, overseas Pakistanis continued to send substantial amounts of money back home, providing further support to Pakistan’s external account and foreign exchange position.

According to data released by the SBP, remittances stood at $3.7 billion in August, compared with the amount received in July. The year-on-year increase highlights continued growth in the flow of workers’ earnings into the country.

The latest figures also show a strong start to the new fiscal year. Pakistan received a total of $7.3 billion in remittances during the first two months of fiscal year 2026-27. During the corresponding period of the previous fiscal year, the country had received $6.4 billion.

This represents a 14.7% increase in remittance inflows during the first two months of the current fiscal year compared with the same period last year.

The continued rise in remittances remains important for Pakistan’s economy, as these inflows provide a major source of foreign exchange  help support the country’s balance of payments. They also contribute significantly to household incomes, particularly for families that depend on financial support from relatives working abroad.

The August increase comes despite uncertainty across the Middle East, where geopolitical tensions have raised concerns about economic activity, employment conditions and international financial flows. Nevertheless, overseas Pakistanis maintained strong financial support for their families and the domestic economy.

The latest SBP figures indicate that remittance inflows have maintained their upward momentum at the beginning of the current fiscal year. If this trend continues, stronger remittance receipts could provide additional support to Pakistan’s foreign exchange reserves and help ease pressure on external financing requirements.

The government and financial authorities have also continued efforts to encourage formal channels for sending money to Pakistan, aiming to increase transparency and ensure that overseas workers use regulated banking and financial systems for their transfers.