Pakistan's FY26 Remittances Rise 8.6% to $41.6 Billion as Saudi Arabia Leads June Inflows
Updated
Updated · Arab News · Jul 9
Pakistan's FY26 Remittances Rise 8.6% to $41.6 Billion as Saudi Arabia Leads June Inflows
3 articles · Updated · Arab News · Jul 9
Summary
$41.6 billion in workers' remittances flowed to Pakistan in FY26, up from $38.3 billion a year earlier, central bank data showed.
June inflows reached $3.5 billion—2.0% higher than a year earlier but 18.3% below May—underscoring monthly volatility within the broader annual rise.
Saudi Arabia sent $829.6 million in June, the largest share, followed by the UAE at $792.2 million, the UK at $514.9 million and the US at $296.8 million.
Those transfers remain a key foreign-exchange buffer for Pakistan, helping finance imports and support households as Islamabad pursues reforms under a $7 billion IMF program.
For economists, sustained remittance growth is central to building reserves, narrowing the current account deficit and limiting reliance on external borrowing.
With remittances soaring but foreign investment collapsing, is Pakistan's economy becoming dangerously reliant on a single, vulnerable source of income?
As Pakistan's freelancers earn nearly a billion dollars, why does a 79-year-old law still hinder their growth and push funds underground?
Pakistan Hits $41.6 Billion in Remittances for FY2025-26: Drivers, Risks, and Future Outlook
Overview
Pakistan achieved a record $41.6 billion in workers’ remittances in FY2025-26, highlighting the vital role of overseas Pakistanis in supporting the national economy. Although this marks a new high, the growth rate slowed compared to the previous year’s surge. The State Bank of Pakistan ended key incentive schemes during this period, which may have influenced remittance patterns. Notably, May 2026 saw a strong monthly increase, reflecting ongoing support from the diaspora. These trends underscore both the resilience of remittance inflows and the impact of policy changes on their future trajectory.