Pakistan’s workers’ remittances recorded a 5% year-on-year decline in March 2026, according to data released by the State Bank of Pakistan, highlighting emerging external risks despite overall resilience.
Remittances stood at $3.83 billion in March, compared to $4.05 billion in the same month last year. However, inflows increased by 17% on a month-on-month basis, largely driven by seasonal demand ahead of Eid ul Fitr.
For the July–March period of FY26, cumulative remittances reached $30.3 billion, reflecting an 8.2% increase year-on-year. This indicates that overall inflows remain strong despite short-term fluctuations.
Analysts attribute the recent monthly rise to typical pre-Eid trends, when overseas Pakistanis send higher amounts to support their families. According to Topline Securities, the broader growth momentum is supported by increased manpower exports, improved exchange rate stability, and government incentives promoting formal remittance channels.
However, experts have warned of potential risks ahead due to rising geopolitical tensions in the Middle East. Concerns involving countries such as Israel, United States, and Iran could impact remittance flows, particularly from Gulf economies where a large number of Pakistani workers are employed.
Analyst Waqas Ghani Kukaswadia noted that the March increase was largely seasonal and that upcoming data for April and May will provide a clearer outlook, especially if regional stability holds.
The latest figures reflect a mixed trend—short-term gains driven by seasonal factors, but growing uncertainty due to external geopolitical developments that could influence remittance inflows in the coming months.
