Overseas Pakistanis have once again propped up the economy. Workers' remittances reached $3.9 billion in October, according to State Bank of Pakistan data released on Tuesday, the highest monthly inflow so far in the current fiscal year and a four-month high.
The October figure was 13.8 percent higher than $3.42 billion a year earlier and 8.5 percent above September's $3.59 billion. Over the first four months of FY27, from July to October, remittances rose 14 percent to $14.77 billion, compared with $12.96 billion in the same period last year.
That total almost matches the country's merchandise trade deficit of $14.6 billion over the same four months. "Overseas Pakistanis just covered almost the entire trade deficit, again," said Waqas Ghani, head of equity research at a Karachi brokerage.
Analysts say that as rising imports widen the trade gap, the steady flow of remittances is playing a central role in easing pressure on the external account and supporting foreign exchange reserves.