Remittances Sent by Overseas Pakistanis Jump. Pakistan witnessed a strong inflow of foreign remittances in January 2026, as overseas Pakistanis sent $3.5 billion, reflecting a 15 percent year-on-year increase compared to $3 billion recorded in January 2025. The surge highlights the continued financial support of expatriate workers toward the country’s economy despite global economic uncertainties.
According to official data released by the State Bank of Pakistan (SBP), remittances remain one of the most critical sources of foreign exchange for Pakistan, playing a vital role in stabilizing the external account and supporting foreign exchange reserves.
Month-on-Month Decline Reflects Seasonal Adjustment
While the year-on-year growth remained strong, remittance inflows showed a 4 percent decline on a month-on-month basis, falling from $3.59 billion in December 2025 to $3.5 billion in January 2026.
Experts believe this decline reflects seasonal moderation following higher inflows typically observed at the end of the calendar year due to holidays, bonus payments, and increased transfers for family support.
Remittances Reach $23.2 Billion in First Seven Months of FY26
Data from the State Bank of Pakistan revealed that remittances during the first seven months of fiscal year 2026 (7MFY26) rose 11 percent year-on-year to $23.2 billion.
According to figures compiled by Arif Habib Limited, this consistent growth has been driven primarily by strong inflows from the Middle East, the United Kingdom, and European countries, highlighting the growing role of diversified remittance corridors.
Saudi Arabia Remains the Largest Source of Remittances
Country-wise data shows that Saudi Arabia continued to be the largest contributor, with remittances totaling $740 million in January 2026, marking a 2 percent year-on-year increase.
The Gulf region remains a key destination for Pakistani workers, especially in construction, services, and oil-related industries, ensuring stable remittance inflows despite economic fluctuations.
UAE, UK, and Europe Show Strong Growth
Remittances from the United Arab Emirates (UAE) rose 12 percent year-on-year to $694 million, reflecting improved employment conditions and increased formal banking transfers.
Meanwhile, the United Kingdom recorded a significant 29 percent year-on-year jump, with inflows reaching $572 million. This sharp rise suggests greater use of official remittance channels and improved earnings among the Pakistani diaspora.
European Union countries also showed exceptional growth, with remittances surging 36 percent year-on-year to $480 million, indicating strengthening financial ties between Pakistan and Europe.
US Remittances Dip Slightly, Other Regions Compensate
In contrast to strong growth from Europe and the Middle East, remittances from the United States declined slightly by 1 percent year-on-year, amounting to $295 million in January 2026.
However, this decline was offset by strong inflows from other regions, which climbed 23 percent year-on-year to $684 million, demonstrating broader global support from overseas Pakistanis.
Overall, total remittances in January 2026 stood at $3.465 billion, compared with $3.003 billion in the same month last year, confirming a solid upward trend.
Strong Performance During 7MFY26 Across Major Regions
During the first seven months of FY26, Saudi Arabia contributed $5.46 billion, registering a 6 percent year-on-year increase. Remittances from the UAE rose 14 percent to $4.78 billion, while inflows from the UK and EU increased by 14 percent and 25 percent, respectively.
This sustained growth highlights the resilience of remittance inflows, even amid global inflation, geopolitical tensions, and tighter monetary policies in major economies.
Importance of Remittances for Pakistan’s Economy
Economic analysts emphasize that rising remittances are playing a crucial role in supporting Pakistan’s external account, helping stabilize foreign exchange reserves and easing pressure on the balance of payments.
Remittances also act as a buffer against elevated import demand and external debt servicing obligations, providing much-needed liquidity during periods of economic stress.
Analysts Expect Continued Support from Overseas Pakistanis
Experts believe that if political and economic stability improves, remittance inflows could remain strong throughout FY26. Increased digitization, improved banking channels, and incentives for formal transfers are also expected to support sustained growth.
However, analysts caution that global economic slowdowns or job market pressures in host countries could impact future inflows, making diversification of remittance sources even more important.
Conclusion
The 15 percent rise in remittances to $3.5 billion in January 2026 underscores the unwavering contribution of overseas Pakistanis to the national economy. Despite a slight month-on-month decline, the overall trend remains positive, with strong inflows from the Middle East, the UK, and Europe.
