KARACHI: Remittances from overseas Pakistanis rose 13 per cent to $3.6 billion in July, delivering a solid start to the new fiscal year for the country’s external account.

The most notable feature of the data is where the money came from. Inflows from the Middle East remained robust despite the ongoing conflict in the region — a resilience that matters disproportionately for Pakistan, given how heavily the remittance base is concentrated in Gulf labour markets.

Remittances have become one of the most dependable pillars of Pakistan’s external position, cushioning the current account and supporting reserves at a time when export growth has been uneven and import costs are exposed to volatile energy prices.

The July figure will be read alongside a cautionary note from the State Bank, whose biannual Monetary Policy Report warned of the risk of price spirals stemming from geopolitical developments in the Middle East. The same report flagged climate-related risks, including evolving El Niño conditions and flooding, as potential drags on the economy.

For policymakers, the message is mixed: a strong remittance print offers breathing room, but the external environment generating those inflows is also the source of the biggest risks on the horizon.