ISLAMABAD – Pakistan received record $41.6 billion in workers’ remittances during FY2025-26, a 9% increase from the previous year, providing boost to the country’s external account.
While the monthly figure declined 18% from May, it remained 2% higher than June 2025, showing resilience of overseas inflows despite regional geopolitical uncertainty.
| Source Country | June Remittances | (YoY) | (MoM) |
|---|---|---|---|
| Saudi Arabia | $830 million | ↑ 1% | ↓ 19% |
| United Arab Emirates (UAE) | $792 million | ↑ 10% | ↓ 21% |
| United Kingdom (UK) | $515 million | — | ↓ 20% |
| United States (US) | $297 million | — | ↓ 15% |
| Fiscal Year | Remittances ($Billion) | YoY Growth |
| FY2024-25 | 38.3 | – |
| FY2025-26 | 41.6 | +9% |
| June 2026 | 3.475 | +2% (YoY) |
| May 2026 | 4.25 | +15.4% (YoY) |
| July–May FY26 | 38.1 | +9.2% |
The record-breaking performance comes at a time when Pakistan is grappling with a widening trade deficit, making workers’ remittances the single most important source of external sector support.
The surge amid government reforms, exchange rate stability and a growing overseas workforce. The crackdown on illegal hawala/hundi networks and reforms in exchange companies encouraged more Pakistanis abroad to use formal banking channels, while the rupee’s relative stability around Rs278 per US dollar removed incentives to delay or divert remittances.
Another major driver was the sharp rise in overseas employment, particularly in Gulf Cooperation Council (GCC) countries, which significantly expanded Pakistan’s remitter base over the past two years.
The improvement was reflected across multiple remittance corridors. Inflows from the United Arab Emirates increased 12% year-on-year, remittances from the European Union climbed 15%, while transfers from other regions posted an even stronger 20% annual growth. Government-backed remittance incentive programmes also played an important role in supporting inflows throughout most of the fiscal year. Market experts said structural improvements have fundamentally strengthened Pakistan’s remittance outlook.
Higher overseas employment, greater reliance on formal banking channels, a stable exchange rate and the narrowing gap between interbank and open market currency rates all contributed to stronger inflows. Administrative action against illegal money transfer operators further reinforced public confidence in the formal financial system.
Beyond supporting millions of households, remittances continued to serve as the backbone of Pakistan’s external account.
The record inflows helped offset a 21.6% year-on-year increase in the country’s trade deficit, which widened to $39.5 billion, allowing Pakistan to maintain a current account surplus despite rising import payments.
The strong performance also enabled the SBP’s foreign exchange reserves to climb to $18.4 billion, up from $13 billion a year earlier, despite sizeable external debt repayments. Analysts believe the improvement has strengthened the rupee and created room for potential monetary easing if macroeconomic conditions remain stable.
Looking ahead, the central bank expects workers’ remittances to reach $44 billion in FY2026-27. However, analysts warned that future inflows will depend on developments in the Gulf region, particularly geopolitical tensions that could affect GCC labour markets, as well as the impact of ending remittance incentive schemes.
Pakistan’s Remittances reach all-time Monthly High of $4.25 Billion in May 2026
