Pakistan’s foreign exchange reserves soared to a 39-month high of $20.03 billion in July, fuelled by a sharp increase in remittances, particularly from the United Arab Emirates, according to data released by the State Bank of Pakistan (SBP).

The SBP’s holdings alone surged by $1.77 billion during the last week, reaching $14.5 billion, the highest level since March 2022. Commercial banks held an additional $5.53 billion.

A key driver behind the build-up has been record remittance inflows, with cumulative workers’ remittances rising to $34.9 billion during July—May FY2025, marking a 28.8% increase from the same period last year. In May alone, remittances totalled $3.7 billion, up nearly 14% year-on-year.

The UAE emerged as a standout contributor, sending $754.2 million during the July—May period, a staggering 45.7% increase from the previous year. Dubai accounted for $567.2 million of that figure, underscoring the emirate’s growing role in Pakistan’s external financing mix.

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