Pakistan receives $3.2B in November remittances, up 9% from last year

Pakistan received $3.2 billion in overseas workers’ remittances in November, the State Bank of Pakistan said Tuesday.

The inflow rose 9% from the $2.9 billion recorded in November 2024 but fell 7% from October’s $3.4 billion.

Total remittances for the first five months of fiscal year 2025-26 reached $16.15 billion, up from $14.77 billion in the same period a year earlier.

Saudi Arabia remained the largest source of inflows in November, sending about $753 million. That was higher than the $729 million received in November 2024 but below the $838 million recorded in October.

The United Arab Emirates sent roughly $675 million, an increase from last year but slightly lower than October’s $703 million.

Remittances from the United Kingdom rose 17% year over year to $481 million. Transfers from the United States totaled $277 million, down from both the $288 million received a year earlier and $301 million in October.

European Union countries sent about $417 million, marking a 29% increase from November 2024.

Other Gulf Cooperation Council states contributed $299 million, while other global sources accounted for $287 million, maintaining a steady share of Pakistan’s foreign exchange inflows.

Remittances from Saudi Arabia and the UAE, which averaged 44% of Pakistan’s total during the past two fiscal years, rose to 46% during the first five months of FY26. Analysts expect the two countries to contribute more than half of Pakistan’s remittances in the coming years.

According to a report of JS Global, workers’ emigration to the UAE has shown a slight improvement, with its share in total labor exports rising to 6% higher than its earlier estimate of 4%. However, this remains well below the historical average of around 34% during 2012-23, reflecting the sharp decline caused largely by changes in visa policies.

Nevertheless, any expected relaxation in the UAE’s visa policies, which is currently under consideration, is likely to further support the emigration trend towards the country. Elsewhere, Saudi Arabia has witnessed a significant surge, accounting for 70% of total emigration this year.

Remittances have played a pivotal role in stabilizing Pakistan’s external account, consistently offsetting the trade deficit. Their role has become even more important as external pressures resurface and the current account posts a deficit.

With imports expected to rise alongside a gradual economic recovery, JS believes the current account balance is likely to close in the red this fiscal year. This showcases the crucial role remittance inflows will play in containing the deficit and supporting external sustainability.