Workers' remittances rise 8.6% to $41.6bn in FY26

• June inflows fall 18.3% month-on-month.
• Saudi Arabia sends $829.6m in June.
• May records strongest FY26 monthly inflow.

Workers' remittances rose 8.6% to $41.6 billion in fiscal year 2025-26, while monthly inflows eased in June after a sharp rise in the previous month, central bank data showed on Thursday.

Remittances stood at $3.5 billion in June 2026, up 2% from the same month last year but down 18.3% from May, according to State Bank of Pakistan (SBP) data. Topline Research attributed the month-on-month decline primarily to a higher base in the previous month amid the festive season.

Cumulatively, overseas Pakistanis sent $41.6 billion during FY26, compared with $38.3 billion in FY25, the central bank said.

The highest inflows in June came from Saudi Arabia at $829.6 million, followed by the United Arab Emirates at $792.2 million, the United Kingdom at $514.9 million and the United States at $296.8 million.

Brokerage Ismail Iqbal Securities' data, citing SBP figures, showed May 2026 was the strongest month of the fiscal year at $4.252 billion, consistent with Topline Research's view that June's month-on-month decline reflected a high base in the previous month.

For the full fiscal year, Saudi Arabia remained the largest source of remittances at $9.783 billion, followed by the UAE at $8.807 billion, the UK at $6.326 billion and European Union countries at $5.227 billion, according to the brokerage data.

"Workers' remittances remained a key source of external sector resilience in FY2025–26, reaching a record $41.6 billion, up 8.6% over the previous year," Dr Khaqan Najeeb, former adviser to the Ministry of Finance, told Geo.tv.

"While inflows eased to $3.5 billion in June due to seasonal factors, they still grew 2% year-on-year, reflecting the continued support of overseas Pakistanis," he said.

Najeeb added that sustaining external stability would require stronger exports, higher productivity and greater investment so that remittances complement a more competitive, investment-led economy.

The remittance performance comes as Pakistan's external sector shows signs of improvement. SBP Governor Jameel Ahmad said earlier that current account figures for June and FY26 were being finalised, adding that he expected the current account balance to remain slightly in surplus for the fiscal year ended June 30.

"I am quite confident that the June number will also be good, so overall we are expecting the current account balance to be slightly in surplus for the fiscal year 2026," Ahmad said at the Pakistan Banking Summit 2026.

He said the current account surplus was supported by workers' remittances and services exports despite higher imports. For the first 11 months of FY26, the current account recorded a surplus of $255 million.