Pakistan records highest-ever remittances of $41.6 billion in FY26

Pakistan recorded its highest-ever annual workers' remittances in fiscal year 2025-26, with overseas Pakistanis sending USD 41.6 billion, up 9% from USD 38.3 billion a year earlier, according to State Bank of Pakistan (SBP) data.

The record inflows provided crucial support to Pakistan's external account, foreign exchange reserves and current account despite a slowdown in June. Remittances totaled USD 3.48 billion in June, down 18% from May's record USD 4.25 billion but 2% higher than the same month last year.

The FY26 inflows mark the highest annual remittances ever recorded by Pakistan, extending a recovery that began in FY24 and reinforcing the country's external financial position.

Saudi Arabia remained the largest source of remittances during FY26, with overseas Pakistanis sending USD 9.78 billion, up 5% from a year earlier.

The United Arab Emirates followed with USD 8.81 billion, an increase of 12% from FY25, while inflows from the United Kingdom rose 7% to USD 6.33 billion.

Remittances from European countries increased 15% to USD 5.23 billion. Inflows from Canada rose 21%, while remittances from Australia jumped 37%. However, transfers from the United States fell 3% to USD 3.62 billion, while remittances from Malaysia declined 9%.

Despite the annual record, remittances moderated in June after exceptionally strong inflows in May, a trend analysts attributed to seasonal normalization following higher transfers during the Ramadan and Eid periods.

Muhammad Aurangzeb said the government aims to sustain the momentum in overseas inflows, setting an FY27 remittance target of about USD 41.3 billion in the federal budget. He said continued macroeconomic stability, reforms to digital payment channels and stronger engagement with overseas Pakistanis would help maintain healthy remittance flows while supporting the country's external financing needs.

Economists expect remittances to remain one of Pakistan's most important sources of foreign exchange, helping finance the current account and strengthen external buffers as economic conditions improve.