Pakistan recorded $41.6bn Remittance Inflows during the 2025-26 fiscal year, marking the highest annual total in the country’s history. The record inflows increased by 9% compared with the previous fiscal year and provided strong support to Pakistan’s external account.
The achievement comes as Pakistan continues to face pressure from a widening trade deficit. Economists believe the $41.6bn Remittance Inflows helped reduce external financial risks by strengthening foreign exchange reserves and supporting the current account.
According to official figures, workers sent home $41.6 billion during FY2025-26, compared with $38.3 billion in FY2024-25. The steady rise reflected continued confidence in formal remittance channels and a growing overseas workforce.
Although monthly remittances declined during June, the annual trend remained positive. Pakistan received $3.475 billion in June 2026. This represented a 2% increase compared with June 2025, despite an 18% decline from May 2026.
The June slowdown followed an exceptionally strong May, when overseas Pakistanis sent $4.25 billion. Analysts noted that seasonal factors often influence monthly remittance patterns, while the overall yearly performance remained encouraging.
Saudi Arabia remained the largest source of remittances during June. Overseas Pakistanis in the Kingdom sent approximately $830 million during the month. Although the amount was 19% lower than May, it was still 1% higher than the same month last year.
The United Arab Emirates ranked second with remittances of $792 million. Transfers from the UAE increased by 10% compared with June 2025, despite recording a month-on-month decline.
Workers in the United Kingdom contributed $515 million during June, while remittances from the United States reached $297 million. These countries continued to play an important role in supporting Pakistan’s economy through regular financial transfers.
Experts attributed the strong $41.6bn Remittance Inflows to several structural improvements. Government reforms encouraged overseas Pakistanis to use formal banking channels instead of informal money transfer systems.
Authorities also strengthened action against illegal hawala and hundi networks. These measures increased public confidence in regulated financial institutions and promoted transparent money transfers.
Exchange company reforms further supported official remittance flows. Meanwhile, the Pakistani rupee remained relatively stable near Rs278 against the US dollar for much of the fiscal year.
Analysts said exchange rate stability reduced incentives for overseas workers to delay remittances or use unofficial channels. As a result, more funds entered Pakistan through the banking system.
Another major factor was rising overseas employment. More Pakistanis found jobs in Gulf Cooperation Council countries over the past two years, expanding the country’s remitter base.
Remittance growth was also recorded across several international corridors. Transfers from the United Arab Emirates increased by 12% over the fiscal year. Remittances from European Union countries rose by 15%, while inflows from other regions recorded an even stronger 20% increase.
Government-backed incentive programmes also encouraged overseas Pakistanis to continue sending money through official channels. Financial experts believe these initiatives strengthened long-term remittance trends.
The record inflows helped offset a 21.6% increase in Pakistan’s trade deficit, which widened to $39.5 billion during the fiscal year. Despite rising imports, the strong inflows supported the country’s current account position.
The improved external outlook also contributed to higher foreign exchange reserves. State Bank reserves increased to $18.4 billion, compared with $13 billion a year earlier, despite significant external debt repayments.
Looking ahead, the State Bank expects remittances to reach around $44 billion during FY2026-27. However, economists caution that future performance will depend on labour market conditions in Gulf countries, regional geopolitical developments, and the continuation of policies that encourage formal money transfers.
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