KARACHI: Pakistan received $3.6 billion in workers’ remittances from overseas Pakistanis during July 2026, marking a significant increase compared with the same period last year, according to data released by the State Bank of Pakistan (SBP). The central bank reported that remittance inflows increased by 13% year-on-year in July and also recorded a 4.5% rise compared with the previous month. The latest figures highlight the continued importance of overseas Pakistanis in supporting the country’s foreign exchange position and overall economic stability. Saudi Arabia remained the largest source of remittances during the month, sending $913.9 million to Pakistan. The United Arab Emirates (UAE) followed with $737.3 million, while overseas Pakistanis in the United Kingdom contributed $555.5 million. The United States also remained an important source, accounting for $317.2 million in remittance inflows. Prime Minister Shehbaz Sharif welcomed the increase and expressed satisfaction over the $3.6 billion received in July. In a statement issued by the Prime Minister’s Office, he said the 13% year-on-year increase in remittances was encouraging and reflected the continued contribution of overseas Pakistanis to the national economy. The prime minister also highlighted the 4.5% month-on-month growth, saying that the consistent financial support provided by overseas Pakistanis was playing an important role in strengthening Pakistan’s economy. He described overseas Pakistanis as a valuable and integral part of the country’s economic mainstream. The latest figures have also generated positive expectations regarding Pakistan’s remittance outlook for the ongoing financial year. Topline Research estimated that remittances could reach around $40.1 billion during FY27 if the current trend continues. Economist Dr Khaqan Najeeb said remittances were becoming increasingly important as a source of foreign exchange, particularly at a time when Pakistan’s export sector continued to face difficulties. According to him, the country’s weak domestic economic conditions, limited employment opportunities and significant differences between local and international wages were encouraging more Pakistanis to seek employment abroad. He noted that the movement of workers overseas was resulting in a corresponding flow of foreign exchange back into Pakistan. The economist said these inflows were helping the country manage its balance of payments and reduce pressure on its external accounts. However, he also warned that the growing dependence on remittances highlighted deeper structural weaknesses within the domestic economy. Dr Najeeb pointed out that Pakistan’s increasing reliance on overseas employment reflected the country’s inability to generate enough productive and well-paying jobs at home. While remittances provide valuable financial support and strengthen foreign exchange reserves, he argued that sustainable economic growth requires stronger domestic employment opportunities and a more competitive export sector. The July figures therefore present both an encouraging development and a broader economic challenge. Rising remittances are providing Pakistan with much-needed foreign exchange, but policymakers also face the task of improving domestic economic conditions so that overseas employment becomes a choice rather than a necessity for a growing number of Pakistanis.