By Staff Reporter
KARACHI: Remittances from overseas workers climbed to $3.2 billion in November, up 9.4% from a year earlier, as inflows from the United Arab Emirates and European Union countries helped offset softer numbers from Saudi Arabia, data from the central bank showed.
The figure marked a 7% drop from October’s $3.4 billion, according to the State Bank of Pakistan. For the first five months of fiscal 2026, which began in July, remittances totaled $16.1 billion, a 9.3% increase from $14.8 billion in the same period a year ago.
Remittances are a key pillar of Pakistan’s external finances, providing hard currency that supports household consumption, helps narrow the current-account gap and bolsters foreign-exchange reserves. The steady pipeline from Gulf economies, led by Saudi Arabia and the United Arab Emirates, has remained crucial for Pakistan’s balance of payments. “Remittances growth momentum is continuing on the back of higher manpower exports in previous years, lower differential in formal and informal exchange market and continuation of remittances incentive package,” Topline Securities said in a note. “We maintain our FY26 remittances target of $41 billion, up 7.5% from the FY25 level of $38 billion.”
Workers’ remittances are expected to exceed the $40 billion mark in the current fiscal year, economic experts said Tuesday, after the country recorded an inflow of $3.2 billion in November, with Saudi Arabia once again emerging as the biggest contributor. “The growth in remittances means the full-year figure is expected to cross the $40 billion target in fiscal year 2026,” said Sana Tawfik, head of research at Arif Habib Limited. “There are a couple of factors behind the rise in remittances. One of them is the stability of the rupee. In addition, the country is receiving more inflows through formal channels.”
Tawfik said the trend was positive for the current account and expected inflows to remain strong in the second half of the fiscal year, noting that both Muslim festivals of Eid fall in that period, when overseas Pakistanis traditionally send additional money home for family expenses and celebrations.
Overseas Pakistanis in Saudi Arabia remitted the largest amount in November as they sent $753 million during the month. The amount was up 3% on a yearly basis, but 10% below the $838 million sent by the expatriates in the same month of the previous year. Inflows from the United Arab Emirates rose by 9% on a yearly basis, from $619 million to $675 million in November. “UAE remittances have regained momentum in recent months, with their share at 21% in Nov-2025 from a low of 18% in FY24,” said Waqas Ghani of JS Global. “Dubai in particular has seen a steady pick-up, reflecting improved inflows from Pakistani expatriates owing to some relaxation in emigration policies,” he said. “Remittances from KSA and UAE continued to dominate, accounting for 45% of total inflows (vs. a 44% average over the last two years).” “We expect this share to improve further in the coming periods, supported by increasing emigration to the region.”
Remittances from the United Kingdom amounted to $481 million during November, down by 4% compared to $499 million in October. Year-on-year inflows from the UK were up by 17%. Overseas Pakistanis in the US sent $277 million in November, a year-on-year decrease of 4%, down 8% on a monthly basis. Meanwhile, remittances from European Union countries clocked in at $417 million in November, recording a significant increase of 29% on a yearly basis.
The government promotes remittances through incentives and formal channels to sustain steady growth and ensure their role in economic stability. Back in August, the State Bank of Pakistan noted that since 2009, the Pakistan Remittance Initiative has been working to enhance home remittances through formal channels in Pakistan. As a result of active engagements with financial institutions, the number of FIs on the PRI network has increased from around 25 in 2009 to more than 50 in 2024. The FIs include conventional banks, Islamic banks, microfinance banks, and Exchange Companies. Further, Electronic Money Institutions are also allowed to receive home remittances through banks. The number of international entities has increased from around 45 in 2009 to around 400 at present.
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