Pakistan registers $4.3bn in remittances for May 2026

The inflow of overseas workers’ remittances into Pakistan stood at $4.251 billion in May 2026, the State Bank of Pakistan (SBP) data showed on Wednesday.

In terms of growth, remittances increased by 20.2% on a month-on-month basis and 15.4% on a year-on-year basis.

Cumulatively, workers’ remittances increased by 9.2% to $38.1 billion during Jul-May FY26, compared to $34.9 billion received during the same period last year.

“The strong growth was primarily driven by Eid-related seasonal inflows, as remittances typically increase during festive periods,” said Topline Securities in a note.

“We expect remittances in FY26E to clock in slightly above our target of $41 billion,” it added.

The 11MFY26 average remittance run-rate has now risen to $3.5 billion per month in FY26, compared to $3.2 billion in the prior year, said Waqas Ghani, Head of Research at JS Global, told Business Recorder, representing a 9% YoY improvement.

“This improvement continues to reflect structural factors like higher emigration volumes, sustained shift from hawala to formal banking channels, and relatively stable FX spreads in the interbank market.

“Regional geopolitical developments appear to have further accelerated remittance flows,” he added.

Pakistan had recorded its “highest-ever monthly remittance inflow in history”, said Adviser to the Finance Minister Khurram Schehzad on X.

“This is a resounding testament to the unwavering confidence of overseas Pakistanis, which is further strengthening the country’s economy and external stability.

“With the last month of the fiscal year, remittances are all set to surpass $41 billion for the first time in history!” he added.

Remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity, and supplementing the disposable incomes of remittance-dependent households.

Meanwhile, the government promotes remittances through incentives and formal channels to sustain steady growth and ensure their role in economic stability.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in May 2026, sending $1,025 million. The amount was up 12% compared to the $914 million sent by the expatriates in the same month last year. Moreover, the amount was up by 22% compared to $842 million in April 2026.

Inflows from the United Arab Emirates rose by 33% on a yearly basis, from $754 million in May 2025 to $1,007 million in May 2026. They increased significantly by 37% on a monthly basis.

Remittances from the UK amounted to $645 million during May 2026, up by 15% compared to $564 million in April.

Overseas Pakistanis in the US sent $350 million in May, a monthly increase of 10% from $317 million during April.

Meanwhile, remittances from European Union (EU) countries clocked in at $466 million in May, recording an increase of 8% on a monthly basis from $432 million in April.