Pakistan’s workers’ remittances increased by 8.5 per cent during the first 10 months of FY26, reaching $33.859 billion despite heightened geopolitical tensions in the Gulf region and concerns over potential disruptions, according to data released by the State Bank of Pakistan (SBP).
The inflows, received between July and April 2025–26, showed continued resilience despite 73 days of regional conflict and broader uncertainty in the Middle East. Remittances from Gulf countries accounted for 53 per cent of total inflows, amounting to $18.2 billion.
Monthly data showed remittances stood at $3.5 billion in April, reflecting an 11.4 per cent year-on-year increase, though a 7.6 per cent decline compared to March.
Earlier concerns among financial analysts about possible disruptions due to regional conflict did not materialise, as Pakistani workers in Gulf countries largely remained in place despite instability.
The SBP noted that strong inflows have supported external financing needs, helping debt repayments and stabilising foreign exchange reserves. Currency dealers said the central bank has actively purchased dollars from the interbank market, contributing to an increase in reserves to around $16 billion. Following a $1.2 billion tranche from the International Monetary Fund (IMF), reserves are expected to approach $18 billion by June 2026.
Officials also indicated that the SBP has purchased approximately $4.5 billion from the market so far in FY26, with total purchases over the past three and a half years reaching $27 billion.
On a country-wise basis, Saudi Arabia remained the largest source of remittances at $7.928 billion, followed by the United Arab Emirates at $7.008 billion, the United Kingdom at $5.165 billion, and the European Union at $4.345 billion. Remittances from the United States declined by 4.7 per cent to $2.978 billion, while inflows from non-Gulf Cooperation Council countries rose by 5.6 per cent to $3.217 billion.