Key Takeaways
- Pakistan recorded its highest-ever remittances of $41.6 billion in fiscal year 2025-26.
- Remittances increased by 9 percent compared to the previous fiscal year, reaching $38.29 billion.
- Saudi Arabia was the largest source of remittances, contributing $9.783 billion.
Pakistan has achieved a significant milestone in its financial performance with record-breaking remittance inflows of $41.6 billion during fiscal year 2025-26, marking a 9 percent increase from the previous year’s total of $38.29 billion.
The latest figures highlight a steady growth trend for Pakistan’s remittances, which have been bolstered by higher overseas employment and continued migration to formal banking channels. According to Waqas Ghani, Head of Research at JS Global Capital, these factors contributed significantly to the robust inflows throughout the fiscal year.
Saudi Arabia emerged as the leading source of remittances, sending $9.783 billion, followed closely by the United Arab Emirates ($8.807 billion), the United Kingdom ($6.326 billion), and the European Union ($5.227 billion).
Among major corridors, remittances from the European Union recorded the strongest annual growth of 15 percent, while those from the United States declined by 3 percent during the fiscal year.
The month-on-month decline in June was attributed to a higher comparison base in May, when remittance inflows were boosted by seasonal transfers ahead of the festive period. Despite this dip, the overall performance for June saw Pakistan receive $3.475 billion, marking a 2 percent increase over the same month last year.
The consistent growth in remittances has provided crucial support to Pakistan’s external account and foreign exchange reserves, while also boosting household incomes. The latest figures extend Pakistan’s strong remittance performance throughout FY26, underscoring its importance for the country’s economy.
Topline Research noted that the decline in June was due to a higher comparison base from May, which saw a surge in remittances ahead of Eid. This seasonal fluctuation is typical and does not indicate an overall trend reversal.
