ISLAMABAD (MNN); Pakistan’s inflow of overseas workers’ remittances reached $3.46 billion in January 2026, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
Remittances rose nearly 15.4% year-on-year, compared to $3.0 billion in January 2025. However, the monthly inflow was slightly down by 4% from $3.59 billion in December 2025.
During the first seven months of fiscal year 2025-26 (7MFY26), remittances totaled $23.2 billion, up 11.3% from $20.9 billion during the same period last year.
“Remittance growth is continuing due to higher manpower exports in previous years, a narrower gap between formal and informal exchange rates, and continuation of the remittance incentive package,” said Topline Securities. They added that Pakistan’s remittances target for FY26 is $41 billion, up 7.5% from $38 billion in FY25.
Remittances play a vital role in supporting the country’s external account, boosting economic activity, and supplementing the incomes of households dependent on foreign funds. The government continues to promote remittances through incentives and formal channels to maintain steady growth and economic stability.
Since 2009, the Pakistan Remittance Initiative (PRI) has worked to enhance inflows through formal channels. As a result, the number of financial institutions (FIs) in the PRI network has grown from around 25 in 2009 to over 50 in 2024, including conventional and Islamic banks, microfinance banks, and exchange companies. Electronic Money Institutions (EMIs) are also authorized to receive home remittances. Similarly, international entities participating in remittances have increased from about 45 in 2009 to roughly 400 today.
Breakdown of Remittances by Country (January 2026)
- Saudi Arabia: $740 million (up 2% YoY, down 9% MoM)
- United Arab Emirates (UAE): $694 million (up 12% YoY)
- United Kingdom (UK): $572 million (up 29% YoY, 2% MoM)
- United States (US): $295 million (down 1% YoY, 2% MoM)
- European Union (EU): $480 million (up 36% YoY)
