KARACHI: Pakistan’s workers’ remittances continued to show strong growth despite 73 days of regional conflict and uncertainty in the Gulf, with inflows rising by 8.5 percent during the first ten months of fiscal year 2025-26, according to data released by the State Bank of Pakistan (SBP).
The country received total remittances worth $33.859 billion during July-April FY26, compared to $31.2 billion during the same period last year.
Data showed that more than half of the inflows originated from Middle Eastern countries, which contributed approximately $18.2 billion, accounting for 53 percent of total remittances received during the period.
The increase came despite concerns among financial experts that ongoing tensions and conflict in the Gulf region could negatively affect overseas Pakistani workers and disrupt remittance flows.
However, those fears largely proved unfounded, as most Pakistanis employed in Gulf countries continued working and sending money back home despite the regional instability.
According to the SBP, workers’ remittances reached $3.5 billion in April 2026 alone, marking an increase of 11.4 percent on a year-on-year basis, although inflows declined by 7.6 percent compared to March.
Economic analysts noted that remittances have increased by nearly $10 billion over the past two years, rising from $23.85 billion during the first ten months of FY24 to $33.86 billion in FY26.
The sharp increase in remittance inflows significantly supported Pakistan’s external account by helping the country repay foreign loans and strengthen its foreign exchange reserves.
Currency market dealers said the central bank has continued purchasing dollars aggressively from the interbank market, pushing reserves close to $16 billion.
Following the release of a $1.2 billion tranche from the International Monetary Fund (IMF), the SBP is expected to increase reserves near its target of $18 billion by the end of June 2026.
Financial experts revealed that the SBP purchased nearly $27 billion from the interbank market over the last three and a half years.
Analysts estimate that during FY26 up to May, the central bank acquired approximately $4.5 billion from the market, although some banking sector estimates suggest the figure may be even higher.
The largest remittance inflows during July-April FY26 came from Saudi Arabia, where remittances increased by 4.2 percent to reach $7.928 billion.
The United Arab Emirates remained the second-largest source of remittances, contributing $7.008 billion, reflecting a growth of 10.2 percent despite regional tensions.
Meanwhile, remittances from the United Kingdom and European Union countries reached $5.165 billion and $4.345 billion respectively, with inflows from the UK recording an 8 percent increase.
Inflows from non-GCC countries rose by 5.6 percent to $3.217 billion during the period.
However, remittances from the United States declined by 4.7 percent to $2.978 billion.
Economists believe the continued rise in remittances is playing a critical role in stabilizing Pakistan’s economy, easing pressure on the rupee, supporting foreign reserves, and strengthening the country’s external financial position amid ongoing economic challenges.
