Key Takeaways
- Remittances from overseas workers reached $3.475 billion in June 2026, down 18% month-on-month but up 2% year-on-year.
- Cumulative remittances for FY26 increased by 9% to $41.6 billion compared to the previous fiscal year's $38.3 billion.
- SBP has discontinued incentive schemes for telegraphic transfer charges and the Sohni Dharti Remittance Program.
The State Bank of Pakistan (SBP) reported that overseas workers' remittances into Pakistan stood at $3.475 billion in June 2026, marking a decline of 18% from the previous month but an increase of 2% compared to the same period last year.
Cumulatively, during fiscal year 2025-2026 (Jul-June), remittances reached $41.6 billion, up by 9% from the $38.3 billion received in the previous fiscal year. This significant inflow underscores the critical role of overseas Pakistanis' contributions to the country's economy.
SBP Governor Jameel Ahmad had earlier predicted that remittances would exceed $41.5 billion for FY26, despite geopolitical challenges in the region. The discontinuation of incentive schemes aimed at encouraging formal banking channels has been cited as a factor affecting these numbers.
The breakdown of remittances shows that Pakistanis working in Saudi Arabia sent the largest amount, totaling $830 million in June 2026, up by 1% from the previous year but down by 19% compared to May. The United Arab Emirates saw a 10% increase on a yearly basis, with remittances rising to $792 million.
Remittances from the UK decreased by 20%, sending $515 million in June 2026, while those from the US fell by 15% to $297 million. Remittances from EU countries also saw a decline of 11%, dropping to $415 million.
In an effort to streamline operations and possibly reduce costs, SBP has ended two incentive schemes: one that reimbursed banks for telegraphic transfer charges on workers' remittances and another called the Sohni Dharti Remittance Program. These programs had previously rewarded overseas Pakistanis for using formal banking channels.
The discontinuation of these incentives is expected to impact future remittance flows, as many expatriates may revert to informal methods due to potential cost savings or convenience.
