Remittances: Overseas Pakistanis Send $3.89bn in October, Nearly Covering Trade Deficit

KARACHI: Pakistan received $3.89 billion in workers’ remittances in October, marking a four-month high and bringing total inflows during July-October FY27 to $14.77 billion. The cumulative amount almost covered the country’s merchandise trade deficit of $14.6 billion during the same period.

According to the State Bank of Pakistan (SBP), October remittances increased 13.8% year-on-year from $3.42 billion and rose 8.5% compared with $3.59 billion in September.

Cumulative inflows grew 14% from the $12.96 billion received during the corresponding four-month period last year.

Waqas Ghani, Head of Equity Research and Senior Vice President at JS Global, said overseas Pakistanis had once again covered almost the entire merchandise trade deficit.

During the first four months of FY27, remittances reached approximately $14.8 billion against a trade deficit of $14.6 billion, which increased 16% year-on-year.

He said sustained inflows, particularly from Gulf Cooperation Council (GCC) economies, were helping contain pressure on the current account, support foreign exchange reserves and strengthen Pakistan’s external financing position.

According to channel checks cited by Ghani, economic activity in the Gulf region was also recovering, reinforcing the resilience of remittance flows.

Saudi Arabia remained Pakistan’s largest source of remittances, contributing $3.67 billion during July-October. The United Arab Emirates (UAE) followed with $3.05 billion. Together, the two countries accounted for 45.5% of total inflows.

Including other GCC member states, the region contributed approximately 54.8% of Pakistan’s total remittances.

Within the UAE, Dubai remained the dominant source, with inflows rising 28% to $2.51 billion. However, remittances from Abu Dhabi declined 29.5%.

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The United Kingdom contributed $2.23 billion, up 19.2%, while inflows from the United States increased 13.8% to $1.26 billion.

Remittances from European Union countries rose 9.6% to $1.87 billion, with Italy, Spain and Germany among the leading contributors.

Ghani said remittances were buying Pakistan time, but the key question remained whether the country’s exports could catch up.

Although sustained overseas inflows are providing significant support to Pakistan’s external account, strengthening exports remains essential to reducing reliance on remittances and improving the country’s long-term external position.