Pakistan received a record $41.6 billion in workers’ remittances during the fiscal year ended June 2026, highlighting the growing role of overseas Pakistanis in supporting the country’s economy despite global uncertainty.
According to data released by the State Bank of Pakistan (SBP) on Thursday, remittance inflows rose 9 percent during FY26, compared with $38.3 billion received in the previous fiscal year.
In June alone, overseas Pakistanis sent $3.475 billion home. While that figure was 18 percent lower than May, it still marked a 2 percent increase compared with June last year.
Economists said the record inflows were not driven by a single factor. Instead, they reflected a combination of stronger overseas employment, exchange rate stability and continued efforts to channel money through formal banking systems.
Saad Hanif, Head of Research at Ismail Iqbal Securities, said reforms in the exchange company sector and the government’s crackdown on illegal hawala and hundi networks encouraged more workers to send money through banks. He added that a stable rupee, trading near Rs278 against the US dollar for much of the year, also reduced incentives to delay transfers or use informal channels.
Hanif noted that remittances increased across several major regions, with inflows from the UAE, European Union and other countries all posting healthy annual gains. He also said government incentive schemes introduced during the year helped support formal transfers.
Waqas Ghani, Head of Research at JS Global Capital, said higher overseas employment and continued migration to formal banking channels remained the key reasons behind the strong performance. Sana Tawfik, Head of Research at Arif Habib Limited, shared a similar view, saying exchange rate stability and the narrow gap between interbank and open market rates made formal transfers more attractive for overseas Pakistanis.
Remittances remain one of Pakistan’s most reliable sources of foreign exchange and are vital for millions of households that depend on income from family members working abroad. They also help strengthen the country’s external account by easing pressure from imports and supporting foreign exchange reserves.
Hanif said the record inflows fully offset a widening trade deficit during FY26 and helped the SBP increase its foreign exchange reserves to $18.4 billion, compared with $13 billion a year earlier, despite significant external debt repayments. Stronger reserves have also helped maintain stability in the rupee.
Looking ahead, the SBP expects remittances to reach $44 billion in FY27. However, analysts say developments in Gulf labour markets and the recent withdrawal of government-backed remittance incentive programmes will be important factors to watch.
Saudi Arabia remained Pakistan’s largest remittance source in June, with overseas workers sending $830 million. The United Arab Emirates followed with $792 million, while Pakistanis in the United Kingdom sent $515 million. Remittances from the United States reached $297 million, and inflows from European Union countries totalled $415 million during the month.
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