Workers’ remittances total $3.5bn in January, up 11.3pc in Jul–Jan FY26

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The State Bank of Pakistan (SBP) on Tuesday said overseas workers’ remittances were recorded at $3.5bn in January, increasing by 11.3 per cent during Jul-Jan of the current fiscal year (FY26).

“Cumulatively, with an inflow of US$23.2 billion, workers’ remittances increased by 11.3 per cent during Jul-Jan FY26 compared to US$20.9 billion received during the same period last year,” said SBP.

“In terms of growth, remittances increased by 15.4pc on a year-to-year basis,” the central bank said.

It elaborated that the remittances in January were “mainly sourced” from Saudi Arabia ($739.6 million), the United Arab Emirates ($694.2m), the United Kingdom ($572.1m) and the United States of America ($294.7m).

Remittances in December rose to the highest level of FY26, reaching $3.6bn, largely driven by continued incentives for sending money through formal channels and relative stability in the exchange rate.

Currency experts believe remittance growth this year is weaker than in FY25. They cite concerns over a “managed” exchange rate, suggesting some inflows may be diverted away from official banking channels.

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 SBP reserves, stabilise the exch­ange rate and post a current account surplus after more than a decade.

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