By Staff Reporter
KARACHI: Pakistan received $3.54 billion in workers’ remittances in April, a 7.6% decline from the previous month but an 11.4% increase from a year earlier, according to data released on Monday by the State Bank of Pakistan.
The inflow helped keep monthly remittances above the $3 billion threshold that has become a reliable floor in recent quarters. For the first 10 months of fiscal 2026, cumulative remittances climbed 8.5% to $33.86 billion from $31.21 billion in the same period a year earlier.
Remittances remain one of the most important sources of foreign exchange for Pakistan’s economy, financing imports, helping stabilise the rupee and supporting household spending for millions of families. The Gulf region, home to a large Pakistani expatriate workforce, continues to account for the bulk of the flows.
Saudi Arabia led the way in April with $841.7 million, up 16% from $725 million a year earlier, though 8% lower than the $919 million sent in March. The United Arab Emirates followed with $734.7 million, a 13% year-on-year gain from $653 million but an 11% drop from the prior month. The United Kingdom contributed $563.7 million, down 4% from March, while the United States sent $317.6 million, an 11% monthly decline. Remittances from European Union countries rose 4% to $432 million.
The central bank’s statement noted that remittances for April came in at $3.5 billion, rising 11.4% year-on-year and falling 7.6% month-on-month. For July through April of fiscal 2026, the total reached $33.9 billion, an 8.5% increase.
Pakistan’s remittances have grown sharply in the past two years. Inflows hit a record $38.3 billion in fiscal 2025, up 26.6% from $30.3 billion the previous year. The government has sought to sustain the trend by offering incentives and encouraging the use of formal banking channels.
Even so, analysts caution that the external account remains vulnerable as the fiscal year draws to a close. “The external account outlook remains fickle as FY26 approaches closure,” Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said. “With crude oil prices elevated and import momentum likely to persist, the current account faces material pressure that domestic production cannot offset.” In this environment, he added, remittances “have transitioned from a supporting buffer to an essential stabilizer. Should inflows weaken, particularly from the GCC region, where concentration risk is acute, the external account could slide into deficit again.” Foreign-exchange reserve targets have already been revised down by $1 billion, Ghani noted, increasing reliance on external financing. “The margin for error is thin,” he said.
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