Pakistan recorded its highest-ever annual inflow of workers’ remittances, receiving $41.59 billion during fiscal year 2025-26, according to figures released by the State Bank of Pakistan (SBP). The amount represents an increase of 8.6 per cent compared with the $38.30 billion received in FY2024-25.
The record inflows provided significant support to Pakistan’s external accounts amid rising imports and a widening goods trade deficit. Remittances have remained an important source of foreign exchange, helping the country meet its external financial requirements and supporting the national economy.
Remittances show long-term growth
Pakistan’s remittance inflows have increased considerably over the past 15 years, although growth has fluctuated. The country received approximately $13.19 billion in FY2011-12, rising to $19.95 billion in FY2016-17 and $21.74 billion in FY2018-19.
Inflows reached $29.45 billion in FY2020-21 and increased to $31.28 billion in FY2021-22. However, they declined to $27.33 billion in FY2022-23 before recovering to $30.25 billion in FY2023-24.
The upward trend continued with $38.30 billion in FY2024-25, followed by the latest record of $41.59 billion in FY2025-26. Cumulative remittance inflows over the 15-year period have crossed $363.92 billion, highlighting the financial contribution of overseas Pakistanis.
Gulf countries remain major sources of remittances
The Gulf region accounted for a significant share of Pakistan’s remittance receipts during FY2025-26. Saudi Arabia contributed approximately $9.8 billion, while the United Arab Emirates sent around $8.8 billion. Other Gulf Cooperation Council (GCC) countries collectively contributed $3.9 billion.
Among Western countries, the United Kingdom accounted for $6.33 billion, while the United States contributed $3.62 billion. Overall, Gulf countries represented approximately 54 per cent of total remittance inflows.
Remittances exceed goods exports
The importance of overseas transfers is also reflected in Pakistan’s trade figures. According to the supplied FY2025-26 data, goods exports stood at $30.13 billion, recording a decline of 6 per cent, while imports increased by 7.9 per cent to $69.6 billion.
The figures resulted in a goods trade deficit of approximately $35.51 billion. Remittances of $41.59 billion were equivalent to around 105 per cent of this deficit and exceeded the country’s total goods exports.
Despite the support provided by overseas transfers, Pakistan’s current account recorded a deficit of $139 million, compared with a surplus of $1.84 billion in FY2024-25. Rising imports remained a source of pressure on the external account.
Foreign exchange reserves and future outlook
Pakistan’s foreign exchange reserves have also recovered, rising from below $3 billion in February 2023 to approximately $18.5 billion at the end of June 2026 and subsequently reaching $21.4 billion, according to the supplied figures.
The SBP has projected that remittances could reach $44 billion in FY2026-27. The first quarter reportedly generated $10.9 billion, representing a 14 per cent year-on-year increase.
Meanwhile, the Sohni Dharti Remittance Programme ended on July 1, 2026, and the Pasban Remittance Reward Scheme was launched with announced prizes worth Rs16 billion.
The record remittance inflows underline the growing role of overseas Pakistanis in supporting the country’s foreign exchange position. Maintaining these inflows will remain important as Pakistan works to manage its trade imbalance and strengthen external economic stability.
