Pakistan records historic $41.59 billion in remittances during FY2025-26

Pakistan has recorded its highest-ever annual inflow of workers' remittances, receiving $41.59 billion during the fiscal year 2025-26,

KARACHI/ISLAMABAD:  Pakistan has recorded its highest-ever annual inflow of workers’ remittances, receiving $41.59 billion during the 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 have provided significant support to Pakistan’s external accounts at a time when the country continues to face pressure from rising imports and a widening trade deficit. Remittances have remained an important source of foreign exchange, helping meet the country’s external financial requirements.

Remittances rise over the past 15 years

Pakistan’s remittance inflows have increased considerably over the past 15 years, although the growth has not been consistent.

During FY2011-12, the country received approximately $13.19 billion, followed by $13.92 billion in FY2012-13. In the subsequent years, inflows continued to rise, reaching $19.95 billion in FY2016-17.

The figure stood at $19.91 billion in FY2017-18 before increasing to $21.74 billion in FY2018-19. Growth continued over the following years, with remittances reaching $29.45 billion in FY2020-21.

Pakistan received $31.28 billion in FY2021-22, but inflows declined to $27.33 billion in FY2022-23. The recovery began in FY2023-24, when remittances reached $30.25 billion. They subsequently increased to $38.30 billion in FY2024-25 before setting a new record of $41.59 billion in FY2025-26.

Over the 15-year period, cumulative remittance inflows have crossed $363.92 billion, highlighting the substantial contribution of overseas Pakistanis to the national economy.

Gulf countries remain major contributors

The Gulf region continued to account 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 the total inflows.

Remittances help offset the trade gap

The importance of overseas transfers becomes clearer when compared with Pakistan’s trade figures.

According to the supplied FY2025-26 figures, goods exports stood at $30.13 billion, registering a decline of 6 per cent, while imports increased by 7.9 per cent to $69.6 billion. This resulted in a goods trade deficit of approximately $35.51 billion.

Remittances of $41.59 billion were equivalent to around 105 per cent of the goods trade deficit and exceeded the country’s total goods exports.

Despite this support, Pakistan’s current account recorded a deficit of $139 million, compared with a surplus of $1.84 billion in FY2024-25. The increase in imports remained a major source of pressure on the external account.

Reserves and future outlook

Pakistan’s foreign exchange reserves have also experienced a substantial recovery, 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 provided figures.

Looking ahead, the SBP has projected that remittances could reach $44 billion in FY2026-27. The first quarter has reportedly already 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 a new Pasban Remittance Reward Scheme was launched with announced prizes worth Rs16 billion.

The latest figures underline the growing importance of overseas Pakistanis in supporting the country’s foreign exchange position. Sustaining these inflows will remain important as Pakistan works to manage its trade imbalance and strengthen external economic stability.