KARACHI: Pakistan received a record USD 41.6 billion inflows in workers’ remittances during fiscal year 2025-26 (FY26), marking the highest annual inflow in the country’s history.
The milestone was driven by stronger inflows from overseas Pakistanis, supported by structural reforms and policy measures introduced by the government and the State Bank of Pakistan (SBP).
According to data released by the SBP on Thursday, cumulatively, workers’ remittances rose by 8.6 percent during the last fiscal year. Overseas Pakistanis, sent remittances amounted to USD 41.6 billion in FY26 compared to USD 38.3 billion received during FY25, showing an increase of USD 3.3 billion.
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On a monthly basis, workers’ remittances stood at USD 3.5 billion in June 2026, up 2 percent year-on-year from USD 3.406 billion in June 2025. However, remittance inflows declined 18.3 percent month-on-month from the record USD 4.25 billion received in May 2026, the highest monthly inflow in Pakistan’s history.
The major corridors of workers’ remittances in June 2026 were Saudi Arabia USD 829.6 million, followed by United Arab Emirates USD 792.2 million, United Kingdom USD 514.9 million and United States of America USD 296.8 million.
Annual home remittance inflows of over USD 41 billion were in line with the State Bank of Pakistan’s revised projections. The central bank had initially forecast remittances of around USD 40 billion for FY26, but later SBP Governor Jameel Ahmad revised the estimate upward to more than USD 41 billion, citing consistently strong monthly inflows.
Higher home remittance inflows not only ease pressure on Pakistan’s external account but also help strengthen the country’s foreign exchange reserves.
The rise in remittances is mainly the result of structural reforms, including stricter action against smuggling and illegal cross-border cash flows, stronger enforcement against the hundi and hawala system, and reforms in the exchange company sector. Under the structural reforms, the number of exchange companies was reduced from 166 to 18 through consolidation, while some 13 new exchange companies backed by commercial banks were established to improve transparency and governance in the foreign exchange market.
Governor SBP Jameel Ahmed is confident that remittances would continue to grow in FY27, with the SBP projecting inflows of around USD 44 billion.
Recently, the SBP had withdrawn the government-backed Telegraphic Transfer Charges Incentive Scheme (TTCIS) for home remittances for banks and exchange companies with effect from July 1, 2026, however they were asked to provide eligible home remittance services free of charge to both senders and beneficiaries.
In addition, SBP also discontinued the Sohni Dharti Remittance Programme (SDRP), a government-backed point-based loyalty scheme for overseas Pakistanis, sending remittances through formal banking channels.
However, Jameel Ahmed, in a recent media interaction, dismissed concerns that the withdrawal of government-funded remittance incentives would discourage overseas Pakistanis from using formal channels and said the move would have no financial impact on either senders or recipients, as commercial banks would absorb the cost under the revised mechanism. He believed that home remittances will continue to increase despite the withdrawal of some incentives previously provided to banks.
Copyright Business Recorder, 2026