Pakistan worker remittances jump slightly to $3.3 billion in February

Workers’ remittances to Pakistan rose modestly in February, helping support the country’s external balance as policymakers warn of a more challenging global environment amid geopolitical tensions.

Remittances totaled $3.3 billion in February, marking a 5.2% increase from a year earlier, according to data released on Tuesday.

Cumulatively, Pakistan received $26.5 billion in remittances from July to February in fiscal year 2026, up 10.5% from $24 billion in the same period last year.

State Bank of Pakistan (SBP) data shows the largest inflows in February came from the United Arab Emirates with $696.2 million, followed by Saudi Arabia with $685.5 million, the United Kingdom with $532.0 million, and the United States with $319.5 million.

Remittances remain a key pillar of Pakistan’s external accounts, financing a significant portion of the country’s trade deficit. In its latest monetary policy statement, the central bank said the current account posted a surplus of $121 million in January, limiting the cumulative deficit to $1.1 billion in July-January FY26.

According to the SBP, imports declined in January while exports and remittances broadly stabilized compared with December levels, helping ease pressure on the external account.

The central bank added that foreign investment inflows increased slightly during the month, though net official outflows were recorded in the financial account. At the same time, the bank’s foreign exchange purchases continued to support the buildup of its reserves.

Despite emerging risks, authorities expect the external position to remain broadly stable. The central bank said the current account deficit is projected to remain within 0%–1% of gross domestic product in FY26.

In that context, the monetary policy committee stressed the need for the timely realization of planned official inflows to help raise the central bank’s foreign exchange reserves to $18 billion by June.

Analysts expect remittance inflows to remain strong this year, projecting they could reach around $42 billion in FY26, compared with about $32 billion last year, though the ongoing conflict in the Middle East could create some uncertainty for migrant worker flows and regional economic activity.