KARACHI: Workers’ remittances to Pakistan eased to $3.59 billion in September, down 1.9% from $3.66 billion in August, but remained 12.7% higher than the $3.18 billion recorded a year earlier, according to data released by the State Bank of Pakistan (SBP).
Despite the month-on-month decline, inflows remained strong during the opening quarter of the current fiscal year. Pakistan received $10.88 billion in remittances between July and September, representing a 14% increase from $9.54 billion during the same period of FY26.
Monthly inflows remained above $3.5 billion throughout the quarter, reaching $3.63 billion in July, $3.66 billion in August and $3.59 billion in September. The average monthly inflow stood at approximately $3.63 billion, exceeding the average of $3.47 billion recorded during FY26.
Remittances on track to approach $44 billion
The first-quarter performance suggests that annual remittances could reach approximately $43.5 billion in FY27, compared with $41.6 billion in the previous fiscal year.
The projected figure is close to the SBP’s annual estimate of around $44 billion. Brokerage firm Topline Securities has offered a more optimistic forecast, expecting remittances to reach $44.7 billion during FY27.
However, year-on-year growth moderated in September to 12.7%, compared with 16.5% in August and 12.9% in July. May’s $4.25 billion remained the highest monthly inflow in the figures cited in the report.
Gulf countries remain the largest source
Saudi Arabia remained Pakistan’s largest source of remittances in September, with inflows reaching $899.1 million. This represented a 2.9% increase from August and a 19.7% rise compared with the $751 million received a year earlier.
Remittances from other Gulf Cooperation Council (GCC) countries increased 4.7% month on month to $342.1 million, with Oman, Qatar and Kuwait all recording gains.
Inflows from the United Arab Emirates (UAE) were broadly stable at $748.5 million, down 0.2% from August but up 10.5% year on year.
Saudi Arabia and the UAE together accounted for approximately 46% of September’s total remittances. Including other GCC countries, the Gulf region contributed around 55% of the month’s inflows.
Quarterly figures for the UAE showed different trends between its major centres. Remittances associated with Dubai increased 30.1% to $1.83 billion during July-September, while Abu Dhabi recorded a 34.5% decline to $331 million. Abu Dhabi’s inflows nevertheless rose in September to $104.5 million from $91.1 million in August. Dubai’s monthly figure eased to $617.5 million from $634.6 million.
UK and North America record quarterly growth
Remittances from several Western countries also recorded growth during the first quarter of FY27.
Inflows from the United Kingdom increased 19.4% to $1.63 billion, while remittances from the United States rose 15.5% to $931 million. September inflows from the US stood at $305.9 million, down 0.9% from August but up 13.7% year on year.
Canada recorded quarterly growth of 11.7%, while Australia registered an increase of 9.5%. Remittances from European Union countries rose 9.8% to $1.41 billion, although France recorded a decline of 4.5%.
Some smaller corridors posted stronger growth, with inflows from Ireland rising 24.4%, Japan 42.6% and South Korea 21.9%.
The UK, EU, US, Canada and Australia collectively accounted for approximately 40% of September’s remittances. The figures highlight the contribution of overseas Pakistanis across both Gulf labour markets and Western economies.
Remittances support Pakistan’s external account
Remittances remain an important source of foreign exchange for Pakistan, helping support the country’s external financing position and household spending.
Sustained inflows have also contributed to the SBP’s efforts to rebuild foreign exchange reserves and narrow the external financing gap. Maintaining growth will depend partly on overseas employment opportunities, migration patterns and the ability of Pakistani workers to access jobs in established and emerging markets.
Rupee edges higher against US dollar
Separately, the Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Friday, closing at Rs277.00 after appreciating by one paisa.
The local currency had settled at Rs277.01 against the dollar in the previous session on Thursday.
In international markets, the euro was heading towards its fifth consecutive weekly decline, although selling pressure showed signs of easing. A more stable French debt market and lower US Treasury yields helped moderate the dollar’s rally.
Gold prices rise by Rs5,900 per tola
Gold prices in Pakistan increased on Friday, tracking gains in the international market. The price of one tola of gold rose by Rs5,900 to settle at Rs440,936, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association.
The price of 10 grams of gold increased by Rs5,058 to Rs378,031. On Thursday, gold had gained Rs600 per tola to reach Rs435,036.
International spot gold rose 1.4% to $4,190.49 per ounce by 1544 GMT, heading for a weekly gain of approximately 1.2%. US gold futures for December delivery also advanced 1.4% to $4,215.60 per ounce.
The gains followed bargain buying after gold fell to a two-month low earlier in the week, pressured by a stronger US dollar and rising Treasury yields. Investors were also assessing the possibility of further US Federal Reserve interest rate increases.
Rhona O’Connell, head of market analysis at StoneX, attributed the recovery to bargain hunting and support around the $4,000 level. She said expectations of further central bank gold purchases were also influencing the market.
US 10-year Treasury yields eased from the more than two-decade highs reached earlier in the week. Meanwhile, domestic silver prices increased by Rs144 to Rs6,512 per tola.
