Pakistan’s remittances surge 14% to $10.9 billion

Pakistan received $10.9 billion in workers’ remittances during the first quarter of the fiscal year 2026-27, marking a 14 per cent increase compared with the same period last year, according to the State Bank of Pakistan (SBP).

The country received $9.5 billion in remittances during July-September of the previous fiscal year. The latest increase offers support to Pakistan’s external finances as the government continues efforts to stabilise the economy and meet its annual remittance target of $44 billion.

However, inflows recorded a slight monthly decline in September. The SBP reported that overseas Pakistanis sent $3.6 billion during the month, representing a 12.7 per cent increase compared with September last year but a 1.9 per cent decrease from August 2026.

Despite the monthly dip, the overall quarterly trend remained positive. Remittances continue to provide an important source of foreign exchange for Pakistan, supporting household spending and helping meet the country’s external financing needs.

The latest figures also suggest that inflows remained resilient despite concerns about regional instability and economic uncertainty in Gulf countries, where millions of Pakistanis work and send money to their families back home.

Remittances are a major source of foreign exchange for Pakistan and have consistently played an important role in supporting the economy. However, their wider benefits remain linked to other economic pressures, including the trade deficit and the country’s need to maintain stable external accounts.

Among the major sources of remittances, the United Kingdom recorded the highest growth during the first quarter of FY27. Inflows from the UK rose by 19.4 per cent to $1.643 billion compared with the corresponding period last year.

Saudi Arabia remained Pakistan’s largest source of remittances, contributing $2.686 billion during July-September. The amount represented an increase of 16.2 per cent year-on-year.

The United Arab Emirates ranked among the other major contributors, with remittances reaching $2.23 billion, up 12.6 per cent from the same period last year.

Remittances from European Union countries increased by 9.8 per cent to $1.4 billion. Meanwhile, inflows from other Gulf Cooperation Council countries, excluding Saudi Arabia and the UAE, reached $1 billion, registering growth of 11.7 per cent.

The figures indicate that remittance inflows increased across almost all major destinations during the quarter, reflecting the continued contribution of overseas Pakistani workers to the country’s economy.

Saudi Arabia also remained the largest source of remittances in September, with Pakistani workers sending home $899 million during the month.

The UAE followed with $748.5 million, while the UK contributed $515.1 million. The United States was also listed among Pakistan’s major remittance sources.

The strong quarterly performance provides some support to the government’s efforts to strengthen foreign exchange inflows. However, maintaining this growth will be important if Pakistan is to achieve its $44 billion remittance target for the full fiscal year.

The latest data underline the continued importance of overseas Pakistanis to the national economy, particularly at a time when the country faces pressure from external financing requirements, trade imbalances and broader economic challenges.