Workers’ remittances hit historic $3.21b in July as Gulf, EU inflows surge — US and Asia slip
KARACHI — Pakistan’s overseas workers sent home a record $3.21 billion in July 2025, marking the highest inflow for any July on record and a 7.4% rise compared to July 2024, State Bank of Pakistan (SBP) data shows. The figure also represents a 47.6% jump over July 2023, underscoring a two-year recovery in remittances.
The growth has been fuelled by over two million economic migrants who left the country in recent years seeking better opportunities amid economic and political uncertainty.
Saudi Arabia remained Pakistan’s top remittance source, sending $823.7 million in July — up 8.4% from a year earlier. The UAE followed with $665.2 million, an 8.8% rise, though this included contrasting trends: Abu Dhabi’s inflows rose 37%, while Dubai’s dropped 3.1%. Other GCC nations sent $296 million, with Oman up 7.1% and Kuwait down 11.1%.
The UK contributed $450.4 million, a modest 1.6% increase. The EU sent $424.4 million, up 21%, boosted by strong growth from Italy (+23.6%), Spain (+35.7%), and Ireland (+48%).
However, key markets showed declines. US remittances fell 10.2% to $269.6 million, Malaysia dropped 17%, Japan declined 7.5%, and South Korea fell 9.7%. Economists say these drops — especially from the US, Pakistan’s fourth-largest remittance source — could be linked to higher living costs, changing job markets, or greater reliance on informal channels.
Analysts warn that Pakistan’s remittance base is overly concentrated, with four countries — Saudi Arabia, UAE, UK, and US — accounting for over two-thirds of total inflows. Any downturn or policy shift in these economies could severely impact Pakistan’s foreign exchange reserves.
The SBP noted that July’s inflows exceeded the FY26 monthly average of $3.19 billion, helped by a stable rupee, Eid-related transfers, and better banking facilitation.
While the record-breaking figure is a positive start to the fiscal year, experts stress the need for labour market diversification, worker upskilling, and expansion into new remittance corridors to reduce vulnerability.