KARACHI: Inflows of workers’ remittances posted a robust month-on-month growth of around 17 percent in March 2026, as overseas Pakistanis increased transfers ahead of Eidul Fitr.
According to the State Bank of Pakistan (SBP), overseas Pakistanis remitted USD 3.83 billion in March 2026, compared to USD 3.28 billion in February 2026, reflecting an increase of USD 550 million.
On a cumulative basis, remittances showed steady growth during the ongoing fiscal year (FY26). Inflows rose by 8.2 percent or USD 2.3 billion to reach USD 30.3 billion during July-March FY26, up from USD 28 billion recorded in the corresponding period of the previous fiscal year (FY25).
As against the monthly surge, remittance declined by 5 percent on a year-on-year basis, as receipts stood at USD 3.8 billion in March 2026 against USD 4 billion in the same month last year.
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Country-wise data showed that the largest share of remittances in March 2026 originated from Saudi Arabia, contributing USD 918.4 million, followed by the United Arab Emirates (UAE) with USD 823.7 million. Remittances from the United Kingdom (UK) and the United States (US) stood at USD 587.3 million and USD 359.3 million, respectively.
Analysts said that the strong monthly increase was in line with expectations, as the SBP had anticipated higher inflows ahead of Eidul Fitr, when overseas Pakistanis typically send increased funds to support their families’ festive spending.
“The sustained and healthy growth in remittances has continued to provide crucial support to the country’s external account, helping ease pressure on the balance of payments”, they added.
They said robust remittance inflows continue to provide crucial support to Pakistan’s external account, helping ease pressure on the current account and shore up foreign exchange reserves, despite some year-on-year fluctuations. Given sizable external debt obligations, the country requires sustained foreign inflows to maintain reserve levels.
However, analysts cautioned that ongoing tensions in the Middle East could pose risks to remittance inflows in the coming months. Pakistan is scheduled to repay around USD 5 billion in external debt during April 2026. Of this, the country has already repaid about USD 1.3 billion in Eurobonds on April 8, while nearly USD 3.5 billion in maturing deposits to the UAE are due to be rolled over or repaid during the month.
Copyright Business Recorder, 2026