Pakistan received $4.3 billion in workers’ remittances in May 2026 — the highest monthly inflow on record — pushing cumulative receipts for FY2026 past $38.1 billion over the July 2025 to May 2026 period, with the full-year total projected to exceed $41 billion when June figures are finalised, according to State Bank of Pakistan data reported by Arab News (Arab News).
Saudi Arabia was the leading source of inflows in the fiscal year, followed by the United Arab Emirates. The two Gulf states account for more than half of all remittances Pakistan receives, making the bilateral labour and financial relationships with Riyadh and Abu Dhabi a critical pillar of Pakistan’s foreign exchange position (Express Tribune).
Saudi lifeline as UAE demands repayment
The record remittance figures arrive at a moment of financial tension in Pakistan’s Gulf relationships. Abu Dhabi asked Islamabad to repay a $3.5 billion deposit that dates back to 2018 without delay, according to reporting by Defence Security Asia, placing the State Bank under short-term pressure. Saudi Arabia responded by extending a $5 billion deposit to the SBP and providing an additional $3 billion placement, effectively neutralising the UAE withdrawal and reinforcing Islamabad’s foreign exchange buffer.
Pakistan’s reserves have climbed to over $17 billion — heading for $18 billion by the end of June — from approximately $4 billion three years ago, with the Gulf deposit arrangements playing a significant supporting role alongside IMF disbursements.
A dependence that carries risk
Analysts have flagged the concentration of remittance flows from a single region as a structural vulnerability. Arab News reported in earlier months that Middle East tensions from the Iran-US conflict created uncertainty about the continuity of remittance corridors, though the June 18 ceasefire framework has since reduced that near-term risk. Pakistani workers remain heavily concentrated in Saudi Arabia and the UAE, with both countries continuing to employ Pakistani labour at scale despite the regional turbulence (Gulf News).
