Key Takeaways
- Pakistan received a record $41.6 billion in workers' remittances in the last fiscal year (FY26).
- The figure is up by around 8.6 per cent compared to FY25.
- Adviser to the Finance Minister Khurram Schehzad termed it Pakistan's 'highest-ever annual remittances in history'.
Pakistan achieved a significant milestone with workers' remittances reaching an all-time high of $41.6 billion during the fiscal year 2025-26 (FY26), marking an increase of approximately 8.6 per cent from the previous year, according to data released by the State Bank of Pakistan (SBP).
Adviser to the Finance Minister Khurram Schehzad highlighted this achievement as a 'record achievement', stating that it reflects the unwavering confidence of overseas Pakistanis and underscores the country's external sector resilience.
The growth in remittances over the past three years has been described by Schehzad as 'phenomenal', driven by millions of hardworking Pakistanis across the globe. However, while FY26 saw record remittances, the year-on-year increase was lower than the 26.6 per cent growth recorded for FY25 and the 10.7 per cent in FY24.
Despite market concerns about potential economic impacts from the US-Iran war that began on February 28, 2023, which could affect Pakistan's economy, the SBP reported a decline of 18.35 per cent month-on-month in June with $3.47 billion in inflows compared to May’s highest-ever monthly inflow of $4.25 billion.
The largest sources of remittance inflows during June were Saudi Arabia ($829.6 million), the United Arab Emirates ($792.3 million), the United Kingdom ($514.9 million), and the United States ($296.8 million). Other countries with significant contributions included Italy ($121.1 million) and Oman ($110.8 million).
The SBP recently abolished two incentive schemes paid to banks for increasing remittances, as the amount grew to a level that came under the International Monetary Fund’s (IMF) radar. While banks expressed disappointment over this decision, financial sector experts believe it is unlikely to significantly affect the profitability of the banking sector.
The ADB study from 2024 indicated that Pakistani migrants tend to remit more when economic conditions are improving back home and there is a positive association between remittances and domestic economic activity. This suggests that as long as these conditions persist, Pakistan can expect continued strong inflows of remittances.
'This historic milestone reflects the unwavering confidence of overseas Pakistanis and reinforces Pakistan's external sector resilience.'
Adviser to the Finance Minister Khurram Schehzad
