Pakistan Exchange Companies’ Dollar Sales Rise 30% in August

In August, exchange companies in Pakistan sold $248.7 million worth of dollars to banks, marking a 30% increase compared to $174.9 million in the same month last year, according to the Exchange Companies Association of Pakistan. This uptick in foreign currency inflows reflects a positive trend, despite a weaker performance in July when sales fell from $290.6 million to $230.7 million.

The persistent concern over the impact of the Gulf conflict on Pakistan’s external inflows remains, but remittances have so far shown resilience. However, worries have arisen following reports that Pakistani workers may be sent back to their home country from the Gulf region, potentially affecting future inflows. Malik Bostan, chairman of ECAP, stated that foreign currency inflows began to improve as the situation in Kashmir normalized, suggesting that inflows in July and August could have been $50 million higher if political disruptions in the region had not interfered.

ECAP has requested the State Bank of Pakistan to restore internet access across Kashmir, with partial access already restored. Exchange companies collectively sold $479.5 million to banks in the first two months of the fiscal year 2026-27, compared to $465.5 million in the same period last year. Pakistan aims to receive remittances of $44 billion in fiscal year 2026-27, up from $41.5 billion received in fiscal year 2025-26.

However, market participants remain concerned about the prolonged impact of the regional conflict on Gulf economies and Pakistan’s foreign exchange inflows.