KARACHI: Home remittance inflows sustained strong momentum, rising 7 percent during the first two months of FY26, the State Bank of Pakistan (SBP) reported on Monday.
According to SBP, Pakistan received $6.35 billion in remittances during July-August FY26, compared to USD 5.94 billion in the same period last year (FY25), reflecting a year-on-year increase of USD 415 million.
Saudi Arabia remained the major contributor in remittances with a 25 percent share in the total inflows received during the period. Remittances from Saudi Arabia surged by 6 percent to USD 1.56 billion in July-Aug of FY26 up from USD 1.47billion in the same period of FY25.
YoY: FY25 remittances soar 27% to $38.3bn
The UAE ranked second with remittance inflows of USD 1.308 billion during the first two months of FY26, showing a 14 percent rise from USD 1.15 billion in the same period last year. In contrast, inflows from the United States and the United Kingdom recorded a decline, falling by 14 percent and 0.5 percent to USD 537 million and USD 914 million, respectively.
Month on Month basis, the country received home remittances amounted to USD 3.138 billion in August 2025 compared to USD 2.942 billion in August 2024, depicting an increase of 6 percent or USD 195 million. However, remittances in August 2025 are slightly lower than June 2025, in which the country received USD 3.214 billion inflows.
In the last fiscal year, Pakistan not only exceeded its ambitious remittance target of USD 38 billion but also bolstered its external account position, supported by policy measures and the joint efforts of the federal government and the SBP to channel inflows through formal banking avenues.
SBP Governor Jameel Ahmed expressed confidence that remittance growth will continue in the current fiscal year. However, he noted that the pace may moderate due to the high base effect and the recent rationalization of incentive schemes. Even so, workers’ remittances are expected to remain robust, likely surpassing USD 40 billion in FY26 compared to USD 38 billion in FY25.
However, banking and financial analyst Ibrahim Amin has said that remittances inflows could maintain its stable growth with the facilitation to overseas Pakistanis from the side of Pakistani commercial banks operating in different countries.
He mentioned that the subsidy by the government may help commercial banks to invest in their operations for serving expatriate Pakistan that will result in increasing flows of remittances to Pakistan. He pointed out that various schemes of the government are being increasingly availed by the overseas Pakistanis, which is reflecting the decent and consistent growth in remittances inflows.
“With the consistent pace of inflows of remittances, the country can achieve USD 40 billion target in the current financial year provided the geo-economic stability and utilisation of banking channels by Pakistani workers located in different countries,” he added.
Copyright Business Recorder, 2025
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