Pakistan’s workers’ remittances recorded a strong performance in December 2025, providing continued support to the country’s external account and household consumption, according to official data released in a press statement. Total remittance inflows during the month stood at US$3.6 billion, reflecting sustained confidence of overseas Pakistanis in the formal banking channel.
On a year-on-year basis, remittances increased by 16.5 percent, while month-on-month growth stood at 12.6 percent, indicating both seasonal strength and an underlying upward trend in inflows. The data points to improved inflow momentum compared to the preceding months, despite global economic uncertainty and geopolitical pressures affecting labor markets in key host countries.
Cumulatively, workers’ remittances reached US$19.7 billion during the first half of fiscal year 2025–26 (H1FY26). This represents a growth of 10.6 percent compared to US$17.8bn received during the same period last year. The steady increase highlights the resilience of remittance flows, which remain a critical source of foreign exchange for Pakistan and play a key role in supporting the balance of payments.
In December 2025, remittance inflows were primarily sourced from Pakistan’s traditional corridors in the Middle East, Europe, and North America. Saudi Arabia remained the largest contributor, with inflows amounting to US$813.1 million. The United Arab Emirates followed closely, sending US$726.1m during the month.
Remittances from the United Kingdom stood at US$559.7m, reflecting strong contributions from the Pakistani diaspora in Europe, while inflows from the United States reached US$301.7m. These four countries collectively accounted for a significant share of total remittances, underscoring the importance of diversified overseas labor markets for Pakistan’s external inflow stability.
Analysts view the sustained growth in remittances as supportive for Pakistan’s macroeconomic outlook, particularly at a time when external financing conditions remain tight. Higher remittance inflows help ease pressure on foreign exchange reserves, stabilize the currency, and provide an important income source for millions of households across the country.
The continued shift toward formal remittance channels, supported by regulatory measures, digital transfer options, and exchange rate stability, has also contributed to maintaining the upward trend. Policymakers see workers’ remittances as a key pillar of external sector stability, alongside exports and foreign investment.
With H1FY26 showing double-digit growth, remittance inflows are expected to remain a critical buffer for Pakistan’s economy in the coming months, especially amid ongoing structural reforms and efforts to strengthen external accounts.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.