Key Points
- Workers’ monthly remittances registered an increase of 15.4 per cent year-on-year
- Cumulative inflows of 11-months posted a growth of 9.2 per cent growth
- Full-year FY26 remittances projected at US$ 42–43 billion
- Saudi Arabia the largest source country in May, followed closely by the UAE
ISLAMABAD: Pakistan received US$ 4.3 billion in workers’ remittances in May 2026, according to data released by the State Bank of Pakistan, with a 20.2 per cnet increase compared with April and a 15.4 per cent rise from a year earlier.
The latest inflows lifted cumulative remittances during the first eleven months of fiscal year 2025–26 (July–May) to US$ 38.1 billion, compared with US$ 34.9 billion in the corresponding period of the previous year, reflecting growth of 9.2 per cent.
Based on current inflow trends, full-year remittances for FY26 are projected to close between US$ 42 billion and US$ 43 billion, depending on performance in June, the final month of the fiscal year.
The trajectory underscores the continued importance of remittances as a key stabilising component of external financing.
Country-wise data showed Saudi Arabia retained its position as the largest source of remittances in May, sending US$ 1.025 billion.
The United Arab Emirates followed with US$ 1.007 billion, maintaining its position as the second-largest corridor for inflows.
Remittances from the United Kingdom contributed US$ 645.5 million, and the United States accounted for US$ 349.8 million during the month.
Together, Saudi Arabia and the United Arab Emirates accounted for nearly half of total inflows, reflecting the concentration of remittances in Gulf labour markets.
Saudi Arabia’s lead is driven by large-scale Pakistani employment across construction, services, transport, and domestic work sectors.
The UAE remains a closely aligned source, supported by a similarly broad expatriate workforce engaged across multiple industries.
The State Bank of Pakistan said the sustained increase in remittances reflects continued overseas employment opportunities in key destination markets and the steady shift toward formal banking channels for cross-border transfers.
Remittances remain one of Pakistan’s largest external-financing source, supporting household consumption, offsetting trade imbalances, and easing pressure on foreign exchange reserves amid ongoing macroeconomic adjustment.
