KARACHI: Workers’ remittances in December rose to the highest level of the current fiscal year (FY26), reaching $3.6 billion, largely driven by continued incentives for sending money through formal channels and relative stability in the exchange rate.

The inflows showed a growth of over 16 per cent on a year-on-year basis. The government is expecting $40bn in remittances for the current financial year, while the strong increase in the first half indicates that the target may be exceeded.

“In terms of growth, remittances (in December) increased by 16.5 and 12.6pc on year-on-year and month-on-month basis, respectively,” said the State Bank.

During the last six months, inflows remained above $3bn, while the second-highest inflows were recorded in October at $3.419bn. The rising trend is seen as a positive sign for higher remittances in the second half of the current fiscal year.

In the first half of FY26, remittances increased by 10.6pc, although this growth remained lower than the 32.8pc recorded in the same period of the previous fiscal year.

Pakistan is among the top countries receiving large foreign exchange inflows through remittances. While a growing number of jobseekers leaving the country is termed by some economists as brain drain, the government considers it beneficial for the external balance. Last year’s record inflows of $38bn helped partially repay external debt, boost State Bank reserves, stabilise the exch­ange rate and post a current account surplus after more than a decade.

According to State Bank data, Pakistan received a total of $19.73bn in the first half of FY26 compared to $17.846bn in FY25, showing an increase of 10.6pc.

The data also shows that the government has already achieved 50 per cent of the annual remittance target within the first six months of FY26.

Currently, obtaining a UAE visa has become extremely restricted, with long queues visible outside its consulate in Karachi. Despite this, the UAE remained the second-largest source of remittances, with Pakistan receiving $4.089bn during the first half of the current fiscal year.

Saudi Arabia topped the list, with remittances of $4.715bn in the first half of FY26. However, growth from the kingdom slowed to 6.6pc compared to 36pc during the same period last fiscal year.

Other significant inflows came from the United Kingdom ($2.9bn, up 11pc), European countries ($2.617bn, growth of 22.6pc), GCC countries ($1.877bn, growth of 4.6pc) and the United States ($1.686bn, showing a decline of 6pc).

Remittance inflows during December 2025 were mainly sourced from Saudi Arabia ($813.1m), the UAE ($726.1m), the UK ($559.7m) and the US ($301.7m).

Published in Dawn, January 10th, 2026