Pakistan’s remittances surge to $23.2bn in seven months, signaling a robust 11.3pc growth that underscores the resilience of its diaspora-driven economy
By S.M. Inam
ISLAMABAD: Pakistani workers’ remittances climbed sharply to $3.5 billion in January 2026, marking a 15.4 percent year-on-year increase, according to figures released by the State Bank of Pakistan (SBP). On a cumulative basis, remittances reached $23.2 billion during the first seven months of the ongoing fiscal year (July–January FY26).
This reflected an 11.3 percent rise compared with $20.9 billion received in the same period last year. The central bank said inflows in January were primarily sourced from the Kingdom of Saudi Arabia, which contributed $739.6 million. The United Arab Emirates followed with $694.2 million, the United Kingdom with $572.1 million, and the United States with $294.7 million.
Sana Tawfik, Head of Research at Arif Habib Limited, said remittances had never reached this level in any previous January. She attributed the sustained strength in inflows mainly to a larger number of Pakistanis working overseas. She also noted improved stability of the rupee and a narrowing gap between formal and informal exchange markets. These factors have encouraged senders to route funds through banking channels.
She added that periods of geopolitical uncertainty can also trigger higher remittance flows, though this factor was currently less pronounced than the structural drivers supporting inflows. Referring to guidance shared by the SBP governor in the most recent monetary policy briefing, Tawfik said remittances were expected to exceed $41 billion and could approach $42 billion in FY26 if the present trend continues.
“Achieving this level would be the highest on record for any fiscal year. It would play a key role in supporting Pakistan’s external account while also helping keep the current account deficit within the central bank’s projected range of 0 percent to -1 percent of GDP,” she added.
Separately, Topline Securities, in its Economy Alert dated February 10, 2026, said Pakistan’s remittances stood at $3.5 billion in January. This was up 15 percent on a year-on-year basis but down 4 percent compared to December. The brokerage noted that total remittances for the first seven months of FY26 amounted to $23.2 billion, up 11 percent from the same period last year.
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