Researchers recorded that the remittances inflows have increased significantly in present years and have become the main financial external inflow in some developing countries, surpassing other inflows that traditionally play an important role in these countries, such as official development assistance and foreign direct investment. Presently Pakistan received a record USD 41.6 billion inflows in workers’ remittances during FY2026, 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 the SBP, cumulatively, workers’ remittances rose by 8.6 percent during the previous fiscal year. Overseas Pakistanis, sent remittances amounted to USD 41.6 billion in FY2026 as against to USD 38.3 billion received during FY2025, showing a rise of USD 3.3 billion. On a monthly basis, workers’ remittances reached at USD 3.5 billion in June 2026, up 2 percent year-on-year (YoY) from USD 3.406 billion in June 2025. However, remittance inflows fell 18.3 percent month-on-month (MoM) from the record USD 4.25 billion received in May 2026, the highest monthly inflow in Pakistan’s history. It is noted that the major corridors of workers’ remittances in June 2026 were Saudi Arabia USD 829.6 million, followed by UAE USD 792.2 million, UK USD 514.9 million and USA USD 296.8 million. Annual home remittance inflows of over USD 41 billion were in line with SBP’s revised projections. The central bank had initially forecast remittances of almost USD 40 billion for FY2026, but later SBP officials revised the estimate upward to greater 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 chiefly the consequence 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. The officials are confident that remittances would continue to grow in FY2027, with the SBP projecting inflows of almost USD 44 billion.
| Pakistan: Workers’ Remittances (Million US Dollars) | ||||
|---|---|---|---|---|
| Country | Mar-26 | Apr-26 | May-26R | June-26 |
| 1. USA | 358.8 | 317.3 | 349.1 | 296.8 |
| 2. U.K. | 587.3 | 563.6 | 645.5 | 514.9 |
| 3. Saudi Arabia | 918.8 | 841.6 | 1,025.1 | 829.6 |
| 4. U.A.E. | 829.9 | 734.4 | 1,006.6 | 792.2 |
| 5. Other GCC Countries | 366.7 | 328.7 | 392.7 | 320.7 |
| 6. EU Countries | 413.8 | 432.1 | 465.8 | 415.4 |
| Germany | 65.2 | 73.3 | 71.4 | 64.8 |
| France | 44.8 | 44.2 | 49.2 | 42.4 |
| Netherland | 9.5 | 8.9 | 10.4 | 8.8 |
| Spain | 72.3 | 74.7 | 83.0 | 74.5 |
| Italy | 121.8 | 125.6 | 135.5 | 121.1 |
| Greece | 40.8 | 48.1 | 50.5 | 46.9 |
| Sweden | 10.8 | 10.3 | 11.8 | 10.8 |
| Denmark | 8.2 | 7.7 | 9.8 | 7.5 |
| Ireland | 23.0 | 23.0 | 25.8 | 21.8 |
| Belgium | 17.4 | 16.4 | 18.4 | 16.7 |
| 7. Malaysia | 17.0 | 13.7 | 18.0 | 12.9 |
| 8. Norway | 13.4 | 13.3 | 15.0 | 12.6 |
| 9. Switzerland | 4.4 | 3.8 | 3.8 | 4.1 |
| 10. Australia | 105.4 | 92.6 | 106.7 | 82.5 |
| 11. Canada | 80.7 | 64.4 | 79.6 | 60.8 |
| 12. Japan | 6.7 | 5.8 | 7.6 | 7.0 |
| 13. South Africa | 24.6 | 22.3 | 32.4 | 22.2 |
| 14. South Korea | 8.4 | 8.8 | 9.8 | 8.5 |
| 15. Other Countries | 95.5 | 94.5 | 94.6 | 94.3 |
| Total | 3,831.4 | 3,537.0 | 4,252.2 | 3,474.5 |