Faraz Saeed

LAHORE: Pakistan received $12.9 billion in workers&rsquo; remittances during the first four months of the current fiscal year (4MFY26), marking a 9.3% increase from $11.9 billion in the same period last year, according to data released by the State Bank of Pakistan (SBP). In October alone, remittances amounted to $3.4 billion, up 12% year-on-year. On a month-on-month basis, inflows rose 7% from $3.2 billion in September, representing one of the strongest monthly inflows in recent months. The SBP said the rise reflected the government&rsquo;s ongoing push to encourage formal channels and expand digital transfer systems, while reducing reliance on informal money transfer networks. Saudi Arabia remained the single largest source of inflows, contributing $821 million in October, an increase of 9% from September and 7% higher than the same month last year. Remittances from the United Arab Emirates totaled $698 million, up 12% year-on-year. Inflows from the United Kingdom reached $488 million, rising 13% annually and 7% from the previous month. The United States sent $290 million, showing an 8% month-on-month increase, though 4% lower than a year earlier. Meanwhile, receipts from European Union countries surged 27% year-on-year to $457 million. Pakistan recorded $38.3 billion in total remittances during FY25, the highest annual inflow on record. Prime Minister Shehbaz Sharif welcomed the increase, calling overseas Pakistanis &ldquo;a backbone of the economy.&rdquo; &ldquo;Overseas Pakistanis are our invaluable assets, serving the nation by sending their hard-earned money,&rdquo; he said. &ldquo;The consistent rise in remittances reflects the trust expatriates have in our economic direction.&rdquo; Analysts said higher remittances are providing much-needed support to Pakistan&rsquo;s external account, especially as export growth remains subdued. Waqas Ghani, Head of Research at JS Global, said remittances had &ldquo;clocked in at one of the strongest levels in recent months,&rdquo; adding that cumulative inflows of $12.96 billion in 4MFY26 indicated &ldquo;a decent 9 percent year-on-year growth.&rdquo; However, he cautioned that sustaining the trend will depend on &ldquo;consistent policy support, expansion of digital channels, and diversification of overseas labor markets.&rdquo; The Pakistan Remittance Initiative (PRI), launched in 2009 to encourage the use of formal banking channels, continues to play a central role. The number of participating financial institutions has grown from around 25 in 2009 to more than 50 by 2024, improving speed and security for overseas senders. Economists say remittances, now Pakistan&rsquo;s largest source of foreign exchange, will remain critical for economic stability as the country continues to face external financing pressures and persistent inflation.

Economy

With Saudi Arabia among largest contributors, Pakistan received $12.9bn in remittances during 4MFY26, rising 9.3%, bolstering external finances as authorities promote formal transfer channels.

Articles tagged with "foreign exchange reserves"

Pakistan remittances rise to $12.9 billion in early FY26: central bank

Pakistan remittances rise to $12.9 billion in early FY26: central bank