KARACHI: Pakistan received a record $41.6 billion in remittances in FY26, significantly higher than the previous year and exceeding the set target.
According to the State Bank of Pakistan (SBP) data released on Thursday, remittances stood at $3.5bn in June, up 2 per cent year-on-year but down 18pc month-on-month. The month-on-month decline was primarily due to a higher base in the preceding month. This brings cumulative remittances for FY26 to $41.6bn, up 9pc year-on-year.
The only high-growth area within the economy was remittances, which not only supported economic expansion, with 92pc going to consumption, but also filled the huge trade gap and maintained a current account balance in the country’s favour.
This $41.6bn inflow supported the economy to post 3.7pc growth in FY26, otherwise, it could have been much lower. Remittances are now the main anchor of the economy, a point recognised at the highest level, and the prime minister recently asked the foreign missions worldwide to help find jobs for Pakistani skilled and unskilled labourers.
Inflows beat target and support growth
However, the threat to overseas jobs in the Middle East has increased as the tense situation has once again led to frequent strikes against Iran and Tehran targeting US military bases in a few Gulf countries in retaliation.
Pakistan mediated and successfully achieved a ceasefire between the US and Iran, but it appears that the ceasefire is no longer holding.
Media reports indicate that Pakistanis in Dubai are losing their jobs, and some people are returning due to fear of another round of war.
The government did not release figures on how many Pakistanis have lost jobs in the UAE, but inflows from the UAE have increased to $8.8 billion, up 12.5 per cent. This was the second highest amount remitted in FY26 from a single destination.
The SBP data showed that $9.783 was sent from Saudi Arabia, the highest in FY26 and up 4.7pc from the preceding year.
Remittances from the UK remained in 3rd position, with inflows of $6.325bn, up 7.1pc. The only decline of 2.6pc was noted from the US at $3.6bn in FY26.
The highest growth of 15pc was noted from the EU, totalling $5.226bn over the preceding year.
The inflows from the GCC countries increased by 6pc to $3.934bn. The only country which crossed $1bn and improved its status in the other list of remitter countries was Australia. The inflow from Australia increased by 37.4pc to $1.142bn in FY26.
Reserves reach $24bn
Meanwhile, Pakistan’s total foreign exchange reserves at the end of FY26 reached $23.989bn, including the State Bank’s $18.471bn.
The central bank reported on Thursday that, for the week ending July 3, the SBP’s forex reserves increased by $1.944bn. The holdings of commercial banks were $5.517bn.
Published in Dawn, July 10th, 2026