Workers’ remittances to Pakistan remained on a strong upward trajectory in August 2026, with overseas Pakistanis sending home $3.656 billion, providing another boost to the country’s external finances, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
The inflows were 16.5 percent higher than the $3.14 billion received in August last year and edged up 0.7 percent from July 2026, reflecting the continued resilience of remittance flows despite global economic challenges.
The latest figures also lifted cumulative remittances for the first two months of fiscal year 2026-27. During July and August, Pakistan received $7.3 billion, compared with $6.4 billion in the corresponding period of the previous fiscal year, marking a 14.7 percent increase.
The steady growth has reinforced expectations that remittances will remain one of the country’s key sources of foreign exchange this year.
Brokerage house Topline Securities projected that remittance inflows would reach $43.7 billion by the end of FY27, highlighting the sector’s continued importance for Pakistan’s economy.
Remittances have long served as a vital cushion for Pakistan’s external account, helping finance imports, support foreign exchange reserves and strengthen household incomes. Millions of families rely on money sent by relatives working abroad to meet everyday expenses, including education, healthcare and housing.
Economists, however, caution that while rising remittances offer short-term relief, excessive dependence on overseas inflows is not a substitute for sustainable economic growth. They argue that long-term reliance on remittances can encourage import-led consumption and contribute to structural economic imbalances, often associated with the so-called Dutch disease.
To maintain the momentum, the government has continued encouraging overseas Pakistanis to use formal banking channels through various incentives aimed at increasing documented remittance flows.
Saudi Arabia remains the largest source
Saudi Arabia remained Pakistan’s biggest remittance corridor in August, with expatriates sending $873.5 million. Although the amount was 4 percent lower than the $914 million recorded in July, it represented a 19 percent increase compared with $737 million received in August last year.
The United Arab Emirates ranked second, with remittances rising to $749.8 million. The inflows were 17 percent higher than a year earlier and also increased 2 percent from July’s $737 million.
Pakistanis living in the United Kingdom sent $563.7 million during the month, marking a strong 22 percent increase from the same period last year.
Remittances from the United States reached $308.9 million, up 16 percent year-on-year, although they slipped 2 percent compared with July.
Meanwhile, inflows from European Union countries totalled $496 million in August, registering a 7 percent increase over the $461 million received in July.
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