Workers’ remittances to Pakistan increased by 14 per cent to $10.9 billion during the first quarter of fiscal year 2026-27 (FY27), compared with $9.5 billion received in the corresponding period last year, according to data released by the State Bank of Pakistan (SBP) on Friday.
However, remittance inflows recorded a slight decline of 1.9 per cent in September compared with August. The overall growth in inflows could help the government meet its annual remittance target of $44 billion for FY27.
“Workers’ remittances were recorded at $3.6 billion during September 2026. In terms of growth, remittances increased by 12.7pc on a year-on-year basis and decreased by 1.9pc on a month-on-month basis,” the SBP said.
Despite concerns over the potential impact of the seven-month Gulf conflict, remittance inflows have remained resilient. Millions of Pakistanis working in Gulf countries continue to send money home, providing crucial support to household incomes and the national economy.
Remittances remain a major source of foreign exchange for Pakistan, with inflows continuing to exceed export earnings.
The latest figures offer some relief as the country navigates economic challenges and seeks to meet the conditions of its International Monetary Fund (IMF) programme.
Meanwhile, the World Bank said this week that 48 per cent of Pakistan’s population lives below the poverty line. Despite the increase in remittances, their broader economic benefits remain partly offset by the country’s widening trade deficit, which puts pressure on the external account.
Among the major sources of remittances, inflows from the United Kingdom recorded the highest growth rate during the first quarter of FY27, increasing by 19.4 per cent to $1.643 billion compared with the same period last year.
Saudi Arabia remained Pakistan’s largest source of remittances, contributing $2.686 billion during July–September, an increase of 16.2 per cent year-on-year.
Remittance inflows from other major destinations also registered positive growth during the quarter.
Pakistan received $2.23 billion from the United Arab Emirates (UAE), marking an increase of 12.6 per cent. Inflows from European Union countries reached $1.4 billion, up 9.8 per cent, while Gulf Cooperation Council (GCC) countries, excluding Saudi Arabia and the UAE, contributed $1 billion, representing growth of 11.7 per cent.
Saudi Arabia remained the largest source of remittances in September 2026, sending $899 million to Pakistan.
The UAE contributed $748.5 million, followed by the United Kingdom with $515.1 million and the United States with $305.9 million.
