Pakistan received a record $4.25 billion in workers’ remittances in May 2026, marking the highest monthly inflow in the country’s history and providing a major boost to foreign exchange reserves and the external account, official data showed on Tuesday.
Figures released by the State Bank of Pakistan and compiled by Topline Research showed that remittance inflows rose 20 percent month-on-month and 15 percent year-on-year.
Analysts attributed the sharp increase largely to seasonal inflows linked to Eid, a period that traditionally sees higher remittance transfers from overseas Pakistanis supporting families back home.
With the latest inflow, cumulative workers’ remittances for the July–May period of FY2025–26 reached $38.1 billion, representing a 9 percent increase compared to the same period of the previous fiscal year. The pace of inflows has placed Pakistan firmly on track to achieve its highest-ever annual remittance total.
Saudi Arabia remained the single largest source of remittances in May, contributing $1.03 billion, followed closely by the United Arab Emirates with $1.01 billion. Inflows from the United Kingdom stood at $645 million, while remittances from the United States amounted to $350 million.
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Strong growth was also recorded from the European Union and other regions, reflecting a broad-based increase across major corridors.
Economists said sustained growth in remittances continues to play a critical role in stabilising Pakistan’s external sector at a time when the country faces pressure from debt repayments, import requirements, and limited export growth.
“Remittances remain the most reliable source of foreign inflows for Pakistan and have been instrumental in supporting the current account and exchange rate stability,” analysts noted.
With one month remaining in the fiscal year, Topline Research projects that total remittances in FY26 will exceed $41 billion for the first time, setting a new annual record and further strengthening Pakistan’s balance of payments position.
The government has repeatedly highlighted overseas Pakistanis as a key pillar of economic resilience, with remittance inflows helping offset external financing gaps and reduce reliance on short-term borrowing.
