Record USD34bn remittances received in 10 months

KARACHI: Pakistan’s home remittances continued their strong upward momentum, surging to a record nearly USD34 billion during the first 10 months of FY26, mainly driven by higher inflows from Gulf Cooperation Council (GCC) countries.

According to the State Bank of Pakistan (SBP), home remittances recorded an 8.5 percent increase in the first ten months of this fiscal year (FY25). Cumulatively, overseas Pakistanis remitted remittances amounted to USD 33.9 billion in July-April of FY26 compared to USD 31.2 billion in the corresponding period of last fiscal year (FY25), showing an increase of USD 2.7 billion.

On a yearly basis, remittances rose by 11.4 percent in April 2026, reaching a record USD3.5 billion compared to USD 3.2 billion in April 2025.

READ MORE: Pakistan records $3.8bn in remittances for March 2026

However, on a month-on-month basis, inflows declined by 7.6 percent in April 2026 as against March 2026, in which USD 3.8 billion worth remittances were received.

Analysts said the growth in remittances was largely driven by robust inflows from Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia and the United Arab Emirates.

They noted that remittances from the United Kingdom and European countries posted impressive year-on-year growth of 8 percent and 18 percent, respectively, during the first 10 months of FY26.

In contrast, traditional western corridors such as the United States remained under pressure during the period.

Analysts emphasized that remittances continue to play a critical role in supporting Pakistan’s external account by consistently helping offset the trade deficit. Their importance has grown further amid renewed external financing and balance of payment pressures.

Following the recent regional conflict, policymakers had anticipated some slowdown in home remittances during FY26 and revised their projections to around USD 41 billion, slightly lower than the pre-crisis estimate of USD 42 billion. However, the latest inflows suggest that remittances have remained largely stable despite external uncertainties.

During July-April FY26, the largest share of remittances came from Saudi Arabia, which contributed USD 7.93 billion, reflecting a 4.2 percent increase over the same period last year. This was followed by the United Arab Emirates with inflows of USD7 billion, marking a strong growth of 10.2 percent.

Remittances from the United Kingdom also posted healthy growth, rising 8 percent to USD5.16 billion. In contrast, inflows from the United States recorded a negative trend, declining by 4.7 percent to USD2.9 billion during the period.

Copyright Business Recorder, 2026