KARACHI: Workers’ remittances to Pakistan recorded a notable increase of 10.5 percent during the first eight months of the current fiscal year (FY26).
According to the State Bank of Pakistan (SBP), cumulatively, the country received home remittances amounting to USD 26.5 billion during July-February of FY26, compared with USD 24 billion in the corresponding period of FY25, reflecting an increase of USD 2.5 billion.
Remittances from Saudi Arabia remained the largest source during the first eight months of the current fiscal year, posting a 4.6 percent increase. Inflows from the Kingdom amounted to USD 6.168 billion during July-February FY26, compared with USD 5.89 billion in the corresponding period of the previous fiscal year.
READ MORE: Pakistan receives $3.5bn in remittances in January 2026
The United Arab Emirates ranked as the second-largest contributor, with remittances rising 12 percent to reach USD 5.44 billion during the period under review.
Analysts said the continued increase in remittance inflows is helping ease pressure on Pakistan’s external account and providing support to the country’s foreign exchange reserves. Workers’ remittances remained a key source of foreign exchange, financing a substantial portion of the country’s trade deficit during the period under review.
In the financial account, according to SBP, net official outflows were recorded in January, while foreign investment inflows posted a marginal uptick, indicating limited but gradual improvement in external financing.
On a monthly basis, remittances also recorded growth. In February 2026, inflows stood at USD 3.3 billion, marking a 5.2 percent year-on-year increase compared with USD 3.12 billion received in February 2025. However, inflows in February 2026 are slightly lower than January 2026, in which the country received USD 3.464 billion remittances.
Remittances inflows during February 2026 were mainly sourced from United Arab Emirates
USD 696.2 million, Saudi Arabia USD 685.5 million, United Kingdom USD532.0 million and United States of America USD319.5 million.
The SBP is expecting higher home remittances inflows in March due to Eid-ul-Fitr.
Copyright Business Recorder, 2026
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