Pakistan Remittances Nearly Cover Trade Deficit
Pakistan remittances reached $14.77 billion in the first four months of the current financial year, nearly matching the country’s $14.6 billion trade deficit over the same period. The State Bank of Pakistan released the figures on Tuesday, The Express Tribune reported.
October brought the strongest month so far in FY27. Inflows rose 13.8% from a year earlier to $3.89 billion, and climbed 8.5% from $3.59 billion in September. Remittances for July to October grew 14% from $12.96 billion in the same months last year.
Waqas Ghani, head of equity research and senior vice president at JS Global, said overseas Pakistanis had covered almost the whole trade gap again. “Overseas Pakistanis just covered almost the entire trade deficit, again,” he said. He added that the inflows were buying Pakistan time, and the open question was whether exports could catch up.
Pakistan remittances: Gulf inflows lead the way
Saudi Arabia and the United Arab Emirates stayed the largest sources. Saudi Arabia sent $3.67 billion in the four months, and the UAE sent $3.05 billion. Together, the two countries supplied about 45.5% of all inflows.
The Gulf region as a whole contributed about $8.09 billion, or 54.8% of the total. Saudi inflows rose 16.5% from a year earlier, while the UAE grew 13.5%. Bahrain recorded growth of 15.8%, Kuwait 13.9% and Qatar 13.6%.
Inside the UAE, the pattern split. Dubai remained the dominant corridor, with remittances rising 28% to $2.51 billion. Abu Dhabi moved the other way, with inflows down 29.5% to $443.2 million.
Inflows from Britain, US and Europe also rise
Outside the Gulf, the United Kingdom emerged as the largest source, sending $2.23 billion in the four months, up 19.2% from a year earlier. Inflows from the United States rose 13.8% to $1.26 billion, while European Union countries sent $1.87 billion, up 9.6%.
Italy contributed $565.2 million, Spain $339.9 million and Germany $282.5 million. Australia sent $386.9 million, up 12.9%, and Canada sent $268.9 million, up 11.5%.
The figures show that the Gulf remains the backbone of remittance inflows, while overseas Pakistanis in Britain, Europe, North America and Australia continue to provide an important source of foreign exchange.
Why the inflows matter for Pakistan
The steady inflows have eased pressure on the external account at a time when the trade gap is widening. Pakistan’s trade deficit reached $14.6 billion in July-October, up 16% from a year earlier, and remittances have now covered nearly all of it. October alone brought $3.89 billion, the highest monthly figure so far this financial year.
Strong remittances also support foreign exchange reserves. The State Bank’s reserves rose to $21.52 billion in October, and sustained inflows help contain pressure on the current account. The current account deficit widened to $874 million in the first quarter, while the balance of payments swung to a $4.39 billion deficit in September.
The numbers follow a swing in the external account earlier this year, when a $500 million surplus in May turned into a $649 million deficit in June as import payments rose and remittances softened seasonally.
Ghani said the Gulf recovery was reinforcing the resilience of the flows. He pointed to channel checks showing economic activity in the Gulf picking up, which supports remittances from the region.
Rupee edges up, gold eases
The rupee continued its marginal appreciation in the interbank market on Tuesday, closing at Rs276.65, up Rs0.01 from the previous session. It had gained 0.03%, or Re0.09, last week to settle at Rs276.66, against Rs276.75 a week earlier, according to State Bank data.
Gold prices declined on Tuesday, tracking losses in the international market. The price of 24-karat gold fell Rs1,500 per tola to Rs430,836, while 10-gram gold dropped Rs1,286 to Rs369,372. In the previous session, gold had risen Rs3,200 per tola to Rs432,336. In the international market, gold fell $15 to $4,083 per ounce, while silver stayed unchanged at Rs5,723 per tola in the local market.
Frequently asked questions
How much did Pakistan receive in remittances in July-October?
Pakistan received $14.77 billion in remittances in the first four months of FY27, up 14% from $12.96 billion in the same period last year.
Did remittances cover the trade deficit?
Nearly. Remittances of $14.77 billion almost matched the $14.6 billion merchandise trade deficit for July to October.
Which countries sent the most remittances?
Saudi Arabia sent $3.67 billion and the UAE $3.05 billion. The Gulf region supplied $8.09 billion, or 54.8% of the total.
How much did Pakistan receive in October alone?
October inflows reached $3.89 billion, the highest monthly figure so far in FY27, up 13.8% from a year earlier.
What happened to the rupee and gold prices?
The rupee closed at Rs276.65 on Tuesday, up Rs0.01. Gold fell Rs1,500 per tola to Rs430,836, while silver stayed unchanged at Rs5,723 per tola.
