Exchange companies in Pakistan sold $248.7 million to banks in August, marking a 30 percent increase from $174.9 million last year.
The latest figures indicate improving foreign currency inflows despite concerns over the impact of regional tensions on Pakistan’s external accounts.
Exchange Companies Record Stronger August Sales
The August performance followed a weaker July, when exchange companies sold $230.7 million to banks. The figure stood at $290.6 million during July last year.
Despite the ongoing Gulf conflict, Pakistan’s remittances have remained relatively resilient so far. However, concerns are growing over the possible return of Pakistani workers from Gulf countries.
A prolonged regional conflict could affect employment conditions and eventually put pressure on future remittance inflows.
Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP), said foreign currency inflows had started improving.
He linked the improvement partly to the normalization of conditions in Kashmir. According to Bostan, inflows during July and August could have been around $50 million higher.
Political disruptions in Kashmir had affected foreign exchange activity during the period, he added.
Pakistan Targets $44 Billion in Remittances
ECAP has formally asked the State Bank of Pakistan to restore internet access across Kashmir. Bostan said partial internet services have already resumed.
Exchange companies sold a combined $479.5 million to banks during the first two months of fiscal year 2026-27. This compares with $465.5 million during the same period last year.
Pakistan has set a remittance target of $44 billion for fiscal year 2026-27. The country received $41.5 billion in remittances during fiscal year 2025-26.
However, currency market participants remain cautious about the longer-term effects of regional tensions. They are particularly concerned about potential pressure on Gulf economies and Pakistan’s foreign exchange inflows.
