• Inflows rise 9.3pc in first four months
• Saudi Arabia, UAE remain top sources as govt eyes $40bn annual target

KARACHI: The remittances sent by overseas Pakis­tanis reached a record high for the current fiscal year, climbing to $3.4 billion in October, according to data released by the State Bank of Pakistan (SBP) on Friday.

During the first four months of FY26, inflows rose 9.3 per cent year-on-year to $12.955bn, compared to $11.851bn in the same period last year — an increase of $1.1bn. October’s remittances were 7.4pc higher than September’s, offering encouragement to the government, which is targeting $40bn in total remittances by the end of the fiscal year.

The government has also announced plans to export more manpower overseas, though it did not specify the destination countries. Following improved diplomatic and defence ties with Saudi Arabia, observers expect a larger number of workers to head to Arab states.

Data show that Saudi Arabia, the UAE and other GCC countries accounted for $7.026bn of the total inflows during the July-October period of FY26. The largest contribution came from Saudi Arabia, with $3.32bn, marking a 7.1pc increase year-on-year. The UAE followed with $2.683bn, while GCC countries (excluding KSA and UAE) contributed $1.241bn.

The most notable growth came from European Union countries, where remittances surged 19.7pc to $1.737bn. Inflows from the EU surpassed those from the GCC and the United States, nearly matching the $1.856bn sent from the United Kingdom, which saw a 4.7pc increase.

Rising dependence

Pakistan’s dependence on remittances continues to deepen as inflows now outpace export earnings. The country received $38.3bn in FY25 — the highest in two decades — which helped it achieve a modest current account surplus. However, that surplus was partly due to the rollover of over $16bn in debt servicing.

The current fiscal year presents an even steeper challenge, with $25bn in external debt repayments due. Analysts note that heavy debt obligations and a persistent trade deficit continue to prevent the government from leveraging strong remittance inflows to ease its external financing pressures.

Although the overall 9.3pc growth in remittances during the first four months trails the 34.7pc rise recorded in the same period last year, the October uptick has raised hopes that inflows could surpass last year’s total.

Published in Dawn, November 8th, 2025