Jul-Jan FY26: Workers’ remittances post 11pc growth

KARACHI: Workers’ remittances to Pakistan recorded a strong inflow of over 11 percent during the first seven months of this fiscal year (FY26), the State Bank of Pakistan (SBP) reported on Tuesday.

According to SBP, on a cumulative basis, workers’ remittances sent by overseas Pakistanis were amounted to USD 23.202 billion during July-January FY26, an increase of 11.3 percent or USD 2.35 billion, compared with USD 20.85 billion received in the same period of the previous fiscal year (FY25).

SBP Governor Jameel Ahmad, in a recent media interaction, projected that workers’ remittance inflows would reach USD 42 billion by the end of the current fiscal year.

READ MORE: SBP revises up projection for workers’ remittances to $42bn in FY26

He also said the SBP’s foreign exchange reserves are expected to hit a record high of USD 20.20 billion by December 2026, noting that the SBP has already surpassed its December 2025 reserve target of USD 15.5 billion by reaching USD 16.1 billion in January.

The country is expected to receive higher remittance inflows in the remaining months of the current fiscal year, as two Eid festivals fall during this period. Traditionally, overseas Pakistanis send increased amounts to their families in Pakistan on these occasions, he informed.

Analysts said the steady growth in remittances continues to provide critical support to Pakistan’s external sector, helping offset the trade deficit and strengthen foreign exchange reserves held by the SBP. Their role has become even more significant as external pressures re-emerge, even as SBP’s reserves continue to rise, they added. They said that the continued increase in inflows of remittances reflects rising use of formal banking channels, relative stability in the exchange rate, and higher employment opportunities for Pakistani workers in key overseas markets.

Month on month basis, inflows of workers’ remittances rose by 15.4 percent to USD 3.464 billion during January 2026 as against USD 3 billion inflows in January 2025.

However, remittances received in January 2026 are slightly lower than December 2025, in which the country received USD 3.6 billion.

The SBP data showed that the bulk of remittance inflows in January came from Pakistanis working in Saudi Arabia, who sent USD 739.6 million. This was followed by the United Arab Emirates with USD 694.2 million, the United Kingdom with USD 572.1 million, and the United States with USD 294.7 million.

Copyright Business Recorder, 2026