KARACHI: Despite 73 days of conflict and heightened uncertainty in the Gulf, remittance inflows continued to rise, recording an 8.5 per cent increase during the first 10 months of FY26.

Remittances from across the Middle East increased and accounted for 53pc, or $18.2 billion, of the total inflows of $33.859bn during July-April 2025-26.

It was also noteworthy that remittances rose by $10bn within two years — from $23.85bn in the first 10 months of FY24 to $33.86bn in FY26.

According to the State Bank of Pakistan (SBP), workers’ remittances stood at $3.5bn in April, an increase of 11.4pc year-on-year but declined by 7.6pc month-on-month.

Inflows fall 7.6pc month-on-month in April

Earlier, financial experts had expressed concerns about possible disruptions caused by the Gulf conflict. However, those fears proved unfounded, as most Pakistanis working in the Middle East did not return home despite the war.

Although the conflict engulfed the region, the fragile ceasefire between Iran and the United States remains uncertain and the situation continues to be volatile.

Higher remittance inflows helped the country repay external loans and enabled the SBP to strengthen foreign exchange reserves despite outflows of about $5bn over a one-month period.

Currency dealers said the SBP had been purchasing dollars from the interbank market on a large scale, pushing reserves to around $16bn. After the inflow of $1.2bn tranche from the IMF, the SBP is expected to raise reserves close to the target of $18bn by the end of June 2026.

During the last three and a half years, the SBP purchased $27bn from the interbank market. Financial experts said that during FY26, up to May, the central bank had bought about $4.5bn from the market, although some bankers estimated the amount to be significantly higher.

Experts said the SBP might purchase a much higher amount by the end of the current fiscal year, as payments due before the start of the new fiscal year still have to be cleared.

The highest remittance inflows were received from Saudi Arabia, rising 4.2pc to $7.928bn in 10MFY26.

The second-highest inflows, amounting to $7.008bn, came from the UAE, which remained under pressure during the conflict. Inflows from the country increased by 10.2pc during July-April.

Inflows from the United Kingdom and the EU stood at $5.165bn and $4.345bn, respectively. Remittances from the UK recorded an 8pc increase during the period.

Inflows from non-GCC countries increased by 5.6pc to $3.217bn during the period. However, remittances from the US declined by 4.7pc to $2.978bn.

Published in Dawn, May 12th, 2026