By Staff Reporter
KARACHI: Workers’ remittances to Pakistan rose more than 11% in the first seven months of the current fiscal year, providing crucial support to the country’s foreign exchange reserves amid ongoing external pressures, the State Bank of Pakistan said on Tuesday.
Remittances sent home by overseas Pakistanis totaled $23.202 billion during July-January of fiscal year 2026, up 11.3% or $2.35 billion from $20.85 billion in the same period a year earlier, according to data released by the central bank. The inflows, which help offset Pakistan’s persistent trade deficit, have been bolstered by greater use of formal banking channels, exchange rate stability and improved job opportunities for Pakistani workers abroad, analysts said. “The steady growth in remittances continues to provide critical support to Pakistan’s external sector, helping offset the trade deficit and strengthen foreign exchange reserves held by the SBP,” they added, noting that the inflows’ importance has grown as external pressures re-emerge even as reserves rise.
State Bank of Pakistan Governor Jameel Ahmad, speaking in a recent media interaction, projected that workers’ remittance inflows would reach $42 billion by the end of the current fiscal year. He also said the central bank’s foreign exchange reserves are expected to hit a record high of $20.20 billion by December 2026, adding that the bank had already surpassed its December 2025 reserve target of $15.5 billion by reaching $16.1 billion in January.
The country is expected to receive higher remittance inflows in the remaining months of the current fiscal year, as two Eid festivals fall during this period, Ahmad said. Traditionally, overseas Pakistanis send increased amounts to their families in Pakistan on these occasions, he informed.
On a monthly basis, remittances rose 15.4% to $3.464 billion in January 2026 from $3 billion in January 2025, the data showed. However, the January inflows were slightly lower than the $3.6 billion received in December 2025. The bulk of January’s remittances came from Pakistanis working in Saudi Arabia, which sent $739.6 million, followed by the United Arab Emirates with $694.2 million, the United Kingdom with $572.1 million and the United States with $294.7 million, according to the central bank data.
Pakistan, which relies heavily on remittances as a key source of foreign currency, has seen inflows stabilize in recent years following efforts to curb informal transfer channels and amid economic reforms tied to international bailout programs.
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