Pakistan’s overseas workers remitted $41.6 billion in fiscal year 2025-26, the State Bank of Pakistan has confirmed, marking the highest annual inflow in the country’s recorded history and an 8.6 percent increase over the $38.3 billion remitted in FY25 (Dawn; The News).
The figure exceeded Pakistan’s total merchandise export earnings for the same fiscal year — a significant threshold: remittances now outperform the country’s entire goods export base, making the Pakistani diaspora the single largest source of foreign exchange for the national economy (VOI World).
The top five source countries were Saudi Arabia ($829.6 million in June alone), followed by the United Arab Emirates ($792.3 million), the United Kingdom ($514.9 million), and the United States ($296.8 million). The Gulf remains the dominant corridor by volume; Europe and North America contribute at higher per-worker values due to higher wages.
Why the number is rising
The SBP attributes the growth partly to a deliberate shift toward formal banking channels following the crackdown on hawala/hundi networks and the closure of the exchange-rate premium between the interbank and open market that had previously made informal transfers more attractive. The SBP also ended its Roshan Digital Account incentive scheme this year, meaning the FY26 increase happened without the promotional subsidy that had partly driven earlier years’ growth.
The structural driver remains simple: Pakistan has more citizens working abroad, particularly in Gulf construction and services, and remittances per worker are increasing modestly as Saudi Vision 2030 and UAE development spending remain elevated.
The implication
A national economy where the diaspora out-earns the export sector reflects both the strength of Pakistan’s overseas workforce and the weakness of its domestic production base. Remittances are non-contingent on Pakistani policy — they arrive regardless of tax regimes or import tariffs — but they are deeply sensitive to Gulf economic cycles, Saudi localisation (Saudization), and geopolitical shocks that affect overseas employment. The concentration of the inflow in the Gulf makes it a single-region exposure at a time when Gulf economies are themselves adjusting.
