ISLAMABAD (MNN); Pakistan recorded its highest-ever annual workers’ remittances in the fiscal year 2025-26, with overseas Pakistanis sending $41.6 billion, reflecting an 8.6 percent increase compared to the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The record inflow surpassed the government’s revised target and marked the largest amount of annual remittances ever received by the country, providing a significant boost to Pakistan’s foreign exchange reserves and external account.
Adviser to the Finance Minister Khurram Schehzad described the achievement as a historic milestone, saying it reflected the continued confidence of overseas Pakistanis in the country’s economy.
In a statement shared on social media, he said the record inflows had strengthened Pakistan’s external sector, improved foreign exchange buffers and reinforced the country’s macroeconomic stability.
He added that remittance growth over the past three years had been remarkable and credited millions of Pakistanis working abroad for their continued contribution to the national economy.
The government had initially projected workers’ remittances at $41 billion for FY2025-26 before revising the official target to $40 billion, both of which were exceeded by the final figures.
Although remittances reached a historic high during the fiscal year, the annual growth rate of 8.6 percent was lower than the 26.6 percent increase recorded in FY2024-25 and the 10.7 percent growth achieved in FY2023-24.
On a monthly basis, remittance inflows declined by 18.35 percent in June, falling to $3.47 billion from the record $4.25 billion received in May.
According to the SBP, Saudi Arabia remained the largest source of remittances in June, contributing $829.6 million, followed by the United Arab Emirates with $792.3 million.
The United Kingdom accounted for $514.9 million, while the United States contributed $296.8 million. Other significant contributors included Italy with $121.1 million and Oman with $110.8 million.
The record inflows came despite concerns that regional instability arising from the US-Iran conflict could negatively affect employment and remittance flows from Gulf countries.
A 2024 study by the Asian Development Bank (ADB) found that overseas Pakistanis generally remit more money when economic conditions improve in Pakistan, indicating a strong link between domestic economic confidence and remittance inflows.
Meanwhile, the SBP recently discontinued two incentive schemes offered to banks for increasing remittance inflows after the programmes came under scrutiny from the International Monetary Fund (IMF).
While banks expressed concerns over the move, financial analysts believe it is unlikely to have a major impact on the sector’s overall profitability.
