KARACHI(National Times)- Workers\u2019 remittances increased by 14 per cent in the first quarter of FY27 compared with the same period of the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.<\/p>\n\n\n\n
However, remittance inflows declined slightly by 1.9 per cent in September compared with August of the same year. The growth trend could help the government achieve its annual remittance target of $44 billion for FY27.<\/p>\n\n\n\n
\u201cWorkers\u2019 remittances were recorded at $3.6 billion during September 2026. In terms of growth, remittances increased by 12.7pc on a year-on-year basis and decreased by 1.9pc on a month-on-month basis,\u201d the SBP said.<\/p>\n\n\n\n
The seven-month Gulf war did not appear to have significantly affected remittance inflows, despite earlier concerns. Millions of Pakistanis have been working in Gulf countries for years, making their remittances a major source of support for the national economy. Remittances continue to exceed export earnings, despite what the government describes as incentives for exporters. Exporters, however, dispute this assessment, arguing that heavy taxation has weakened the export sector.<\/p>\n\n\n\n
The latest data show that workers\u2019 remittances rose by 14pc to $10.9 billion during the first quarter of FY27, compared with $9.5bn received in the corresponding period of the previous fiscal year.<\/p>\n\n\n\n
The increase provides some relief to the government as Pakistan continues to face economic challenges and seeks to meet the conditions attached to its International Monetary Fund (IMF) programme. The IMF pushes for sustainable economic growth but appears less concerned about the resulting increase in poverty.<\/p>\n\n\n\n
Meanwhile, the World Bank said this week that 48pc of Pakistan\u2019s population lives below the poverty line, despite the country\u2019s adherence to IMF guidelines. However, the impact of remittance growth on the broader economy remains constrained by Pakistan\u2019s rising trade deficit, which offsets some of the benefits of these inflows, including their contribution to the external account.<\/p>\n\n\n\n
UK remittances up 19.4pc<\/p>\n\n\n\n
Among major sources of remittances, inflows from the United Kingdom recorded the highest growth rate, rising by 19.4pc to $1.643bn during July-September FY27 compared with the same period last year.<\/p>\n\n\n\n
Saudi Arabia remained the largest source of remittances, with inflows reaching $2.686bn, representing growth of 16.2pc during the quarter.<\/p>\n\n\n\n
Remittance inflows from almost all major destinations recorded positive growth during the first quarter of FY27.<\/p>\n\n\n\n
The United Arab Emirates (UAE) contributed $2.23bn, marking an increase of 12.6pc. Inflows from European Union countries amounted to $1.4bn, up 9.8pc, while Gulf Cooperation Council (GCC) countries, excluding Saudi Arabia and the UAE, contributed $1bn, representing growth of 11.7pc.<\/p>\n\n\n\n
The major sources of workers\u2019 remittances during September 2026 were Saudi Arabia ($899 million), the UAE ($748.5 million), the UK ($515.1 million) and the United States ($305.9 million).<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI(National Times)- Workers\u2019 remittances increased by 14 per cent in the first quarter of FY27 compared with the same period of the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday. However, remittance inflows declined slightly by 1.9 per cent in September compared with August of the same […]<\/p>\n","protected":false},"author":2,"featured_media":134598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-134597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest_news","entry"],"yoast_head":"\n