Pakistan registers $3.7bn in remittances for August 2026

The inflow of overseas workers’ remittances into Pakistan stood at $3.656 billion in August 2026, the State Bank of Pakistan (SBP) data showed on Wednesday.

In terms of growth, remittances increased by 16.5% on a year-on-year basis and 0.7% on a month-on-month basis.

Cumulatively, workers’ remittances increased by 14.7% during Jul-Aug FY27 to $7.3 billion, compared to $6.4 billion received during the same period last year.

“We expect remittances for FY27 to clock in at $43.7 billion,” said Topline Securities in a note.

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.

However, experts believe that an over-reliance on remittances is unsustainable and can hinder long-term economic stability, potentially leading to import-driven growth and exacerbating symptoms of Dutch disease.

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

“Sustained remittance flows remain an important pillar of Pakistan’s external account — supporting household incomes, FX liquidity, reserves and overall external-sector resilience,” Khurram Schehzad, Adviser to the Ministry of Finance, said in a post on a social media platform.

Major corridors of workers’ remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in August 2026, sending $873.5 million. The amount was up 19% compared to the $737 million sent by the expatriates in the same month last year. However, the amount was down by 4% compared to $914 million in July 2026.

Inflows from the United Arab Emirates rose by 17% on a yearly basis, from $643 million in August 2025 to $749.8 million in August 2026. However, on a monthly basis, remittances increased by 2%, up from $737 million registered in July 2026.

Remittances from the UK amounted to $563.7 million in August 2026, up 22% from $463 million in the same month last year.

Overseas Pakistanis in the US sent $308.9 million in August, a 16% increase from $267 million in the same month last year. However, on a monthly basis, remittances decreased by 2%.

Meanwhile, remittances from European Union (EU) countries clocked in at $496 million in August, recording an increase of 7% on a monthly basis from $461 million in July.