Overseas Pakistanis remitted $3.42 billion in October 2025, an increase of 11.9% compared to the same month last year. While this surge provided temporary support to Pakistan’s fragile external accounts, the widening trade deficit, driven by surging imports, has reached a dangerous level of $12.6 billion.
Remittance Highlights
According to provisional data released by the State Bank of Pakistan (SBP), total remittances for the first four months (July to October) of FY 2025-26 stood at $12.96 billion, which is 9.3% higher than the $11.85 billion recorded during the same period last year.
- Saudi Arabia remained the largest source, with $820.9 million received in October, reflecting a 9.3% increase month-on-month and a 7.1% increase year-on-year.
- Remittances from the UAE totaled $697.7 million (a 15% increase).
- UK contributions were $487.7 million (a 4.7% increase).
- Remittances from the US stood at $290 million, which is 8.8% lower than the previous year.
- The European Union countries collectively sent $457.4 million, showing a 19.7% annual increase.
Trade Deficit Concerns
On the other hand, according to the Bureau of Statistics, the trade deficit widened to $12.6 billion in the first four months of the fiscal year, which is 38% higher than the previous year.
- Imports during this period increased by 15.1% to reach $23 billion.
- Exports declined by 4% to $10.5 billion.
In October alone, imports surpassed the $6.1 billion mark, the highest since March 2022, while exports were $2.8 billion. This led to a monthly trade deficit of $3.2 billion, which is 56% higher than the previous year.
Experts warn that if the government does not implement immediate reforms in export policy, the import pressure and trade deficit could once again strain the external accounts. The Prime Minister has established eight working groups focusing on energy, tax, and exports to address the situation; these groups are expected to submit their recommendations by the middle of this month.
