Pakistan recorded $3.46 billion in workers’ remittances in January 2026, reflecting a 15.4 percent year-on-year increase compared to $3.0 billion received in January 2025, according to official data released by the State Bank of Pakistan (SBP). On a month-on-month basis, however, inflows declined by 4 percent from December 2025, when remittances stood at $3.59 billion.
Cumulatively, during the first seven months of fiscal year 2026 (7MFY26), remittance inflows reached $23.2 billion, marking an 11.3 percent rise from $20.9 billion recorded in the same period of the previous fiscal year. The steady increase underscores the growing importance of overseas Pakistanis in supporting the country’s external account and sustaining household consumption through formal financial channels.
Remittances remain a critical pillar of Pakistan’s economy, providing foreign exchange liquidity, supporting the balance of payments, and strengthening domestic purchasing power. Policymakers have continued efforts to channel inflows through regulated banking systems by offering incentives for transfers via official routes, reducing reliance on informal networks.
A key driver behind this shift has been the Pakistan Remittance Initiative (PRI), launched in 2009 to expand formal remittance infrastructure. Since its inception, the number of participating financial institutions has grown from around 25 to more than 50 by 2024. These include conventional banks, Islamic banks, microfinance institutions, and exchange companies. The initiative has also broadened participation from international partners, increasing the number of overseas entities facilitating remittances from approximately 45 in 2009 to nearly 400 today.
In a recent move to further digitize remittance flows, the SBP permitted exchange companies to utilize Raast, Pakistan’s instant payment system, for home remittance transactions. This integration allows beneficiaries to receive funds directly into bank accounts and digital wallets, reducing settlement times and enhancing transparency across the transaction lifecycle. The development aligns with broader digital finance reforms aimed at strengthening financial inclusion and improving transaction traceability.
Country-wise data for January 2026 indicates that Saudi Arabia remained the largest source of remittances, contributing $740 million. While this represented a 2 percent increase compared to January 2025, it marked a 9 percent decline from December 2025. The United Arab Emirates followed with $694 million in inflows, reflecting a 12 percent year-on-year increase from $622 million in January last year. Of the UAE total, $694.16 million was attributed to Dubai and $544.75 million to Abu Dhabi.
Other Gulf Cooperation Council countries also maintained significant contributions. Remittances from Kuwait stood at $329.26 million, Qatar at $47.41 million, and Bahrain at $13.49 million. From Oman, overseas workers sent $105.59 million during the month.
In Europe, remittances from the United Kingdom reached $572 million, reflecting a 29 percent increase compared to January 2025 and a 2 percent rise from December 2025. Inflows from the United States totaled $295 million, down 1 percent year-on-year and 2 percent month-on-month. Pakistani expatriates in European Union countries collectively sent $479.58 million, with Italy contributing $142.61 million, Spain $80.45 million, and Germany $77.45 million. France and the Netherlands accounted for $55.49 million and $10.82 million, respectively, while Ireland and Belgium sent $25.92 million and $18.85 million.
Additional inflows came from Australia at $109.71 million, Canada at $67.13 million, South Africa at $29.35 million, South Korea at $9.31 million, Malaysia at $12.47 million, Norway at $13.24 million, and Switzerland at $4.75 million. Remittances from other countries collectively amounted to $103.83 million.
The January performance highlights continued reliance on technology-enabled, regulated financial channels and reflects ongoing efforts by the central bank to modernize payment infrastructure. With sustained institutional support and digital integration, remittances are expected to remain a central component of Pakistan’s external sector stability.
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