Pakistan received a record $41.6 billion in workers’ remittances in the last fiscal year (FY26), up by around 8.6 per cent compared to FY25, according to data released by the State Bank of Pakistan (SBP) on Thursday.

Adviser to the Finance Minister Khurram Schehzad said the figure was Pakistan’s “highest-ever annual remittances in history”.

“This historic milestone reflects the unwavering confidence of overseas Pakistanis and reinforces Pakistan’s external sector resilience, stronger foreign exchange buffers, and improving macroeconomic fundamentals,” he said on X.

The adviser termed the inflows a “record achievement”, adding that the growth over the last three years had been “phenomenal, powered by millions of hardworking Pakistanis across the globe”.

The latest figures were in line with the government’s expectations that total remittances would surpass the official target by the end of FY26 on June 30. The government had initially projected inflows of $41bn before revising the target to $40bn.

While FY26 saw record workers’ remittances, the 8.6pc year-on-year rise was lower than the 26.6pc growth recorded for FY25, as well as the 10.7pc increase in FY24.

Month-on-month, remittances declined by 18.35pc, with June recording $3.47bn in inflows from overseas Pakistanis compared to $4.25bn in May, which were the highest-ever monthly inflows.

Data showed that Saudi Arabia ($829.6 million) and the United Arab Emirates ($792.3m) were the biggest sources of remittance inflows during June, followed by the United Kingdom ($514.9m) and the United States ($296.8m).

Other countries with over $100m of inflows were Italy ($121.1m) and Oman ($110.8m).

The record remittances came despite market concerns that uncertainty in the Gulf region arising from the US-Iran war, which broke out on February 28, would hit Pakistan’s economy on multiple fronts.

A study published by the Asian Development Bank (ADB) in 2024 found that Pakistani migrants tend to remit more when economic conditions are improving back home, and when there is a positive association between remittances and domestic economic activity.

The SBP last week abolished two incentive schemes paid to banks for increasing remittances, after the amount grew to a level that came under the International Monetary Fund’s (IMF) radar.

Banks expressed disappointment over the decision, but financial sector experts believe the move is unlikely to significantly affect the profitability of the banking sector.