Pakistan money brief: remittances up 14% to $10.9bn in July–September, gold hits Rs440,936 per tola, PSX slips

Key takeaways

• Workers' remittances reached $10.87 billion in July–September 2026, the first quarter of FY27, up 14% from $9.54 billion a year earlier, the State Bank of Pakistan (SBP) said on Friday.
• September alone brought $3.6 billion, up 12.7% year on year but 1.9% lower than August's $3.66 billion.
• Saudi Arabia remains the biggest source. The UK posted the fastest growth among major corridors, up 19.4% for the quarter.
• Gold rose Rs5,900 to Rs440,936 per tola on Friday, tracking a $59 rise in the international price to $4,184 an ounce. "Gold price in Pakistan" was among the top trending searches in the country on Saturday morning.
• The KSE-100 closed 352.63 points lower at 167,089.28 (-0.21%) as profit-taking, high oil prices and regional tension outweighed the IMF staff-level agreement.

This article is for information only and is not financial advice.

Remittances: the quarter in numbers

The SBP figures show inflows growing from almost every major destination. Here is the quarterly breakdown reported by Dawn:

For September, the main corridors were Saudi Arabia ($899.1 million), the UAE ($748.5 million), the UK ($515.1 million), other GCC states ($342.1 million) and the United States ($305.9 million), according to the SBP data carried by APP. EU countries sent $447.7 million, led by Italy ($133.5 million), Spain ($84.6 million) and Germany ($68.5 million). Australia contributed $101 million and Canada $66.5 million.

Why it matters

Remittances are Pakistan's single largest source of foreign exchange, exceeding export earnings, and they matter even more this year as the government works through its IMF programme. Dawn notes the government's target for FY27 is $44 billion, after a record $41.6 billion in FY26, and that growth at the current pace would put that target within reach.

Two caveats from the coverage. First, the month-on-month dip in September is small but worth watching after a strong August. Second, Dawn points out that the benefit of higher inflows is partly offset by a widening trade deficit, and cites a World Bank finding this week that 48% of Pakistan's population lives below the poverty line. The Gulf conflict that has run for seven months does not appear to have dented inflows from Pakistanis working in the region, despite earlier fears.

Gold: second straight rise

The All Pakistan Gems and Jewellers Sarafa Association reported the following rates for Friday, 9 October:

Thursday's close had been Rs435,036 per tola after a Rs600 gain, so the metal has added Rs6,500 in two sessions. Local prices follow the international market closely, so what happens to the dollar gold price and the rupee over the coming week will decide whether this run continues. Buyers should note that Sarafa rates are a benchmark; jewellers add making charges and local premiums.

Stock market: profit-taking after the IMF deal

The Pakistan Stock Exchange closed lower on Friday despite the positive news earlier in the week that Pakistan and the IMF had reached a staff-level agreement on the fourth review of the $7 billion Extended Fund Facility and the third review of the $1.4 billion Resilience and Sustainability Facility, which could unlock about $1.21 billion once the IMF board approves it.

Breadth was actually positive, with 243 companies closing higher and 203 lower, and Business Recorder reported that the foreign investors' Special Convertible Rupee Account balance rose Rs2 billion to nearly Rs30 billion. Darson Securities told the paper that an absence of fresh triggers, inflation worries and external-account pressure kept investors cautious. Cnergyico, Pak Refinery and Treet Corp led turnover.

What to watch

• The IMF Executive Board's decision on the $1.21 billion disbursement.
• October remittance data in early November, to see whether the September dip was a one-off.
• International gold around the $4,200 mark, and the rupee, which together set local gold rates.
• The weekly inflation reading, which Pakistan Bureau of Statistics data this week put near 12% on food prices.