KARACHI(National Times)- Exchange companies’ dollar sales to banks increased by 30 per cent year-on-year in August, indicating higher inflows.

Data from the Exchange Companies Association of Pakistan (ECAP) showed these companies sold $248.7 million to banks in August, up from $174.9m in the same month last year.

However, July saw a decline to $230.7m, down from $290.6m in the corresponding month last year.

Pakistan has remained unaffected by the Gulf war as far as remittances are concerned, but reports in the media that Pakistani workers are being sent back home from Gulf countries have caused fear.

ECAP reports $248.7m sold to banks in August

The government has also noted the situation, while the market fears a shock if the war continues to drag on in the region. Pakistan is already struggling to manage high oil prices, the main victim of the war.

The August inflow could be higher if the disturbance in Kashmir were fully controlled. However, Malik Bostan, Chairman ECAP, said the situation has begun to normalise in Kashmir and inflows have increased.

“There could have been $50m more inflows during July-Aug this year had the Kashmir situation not been disrupted by political conflicts,” said Malik Bostan.

He said the ECAP has officially requested the State Bank to allow internet access across the entire Kashmir, while partial internet access has already been restored.

The exchange companies collectively sold $479.5m in 2MFY27, up from $465.5m in 2MFY26.

Pakistan expects higher remittances in FY27, with the target set at $44 billion against an inflow of $41.5bn in FY26.

However, currency experts said the prolonged war has changed the economic situation across the Middle East. Gulf countries are desperate because they cannot sell their only income-generating product, oil.

“The UAE was the most thriving economy in the region, but the situation has changed its economy; now the country is trying hard not to expel expatriates, which may paint a bleak picture of Dubai,” said a currency expert.