ISLAMABAD: Pakistan received a record $4.3 billion in workers’ remittances in May, driven by strong inflows from Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States, according to data released by the country’s central bank on Wednesday.
Remittances are a vital source of foreign exchange for Pakistan, helping finance imports, support household incomes and bolster the country’s external accounts. The inflows have become particularly important as Islamabad seeks to maintain economic stability under a $7 billion International Monetary Fund (IMF) program and strengthen its foreign exchange reserves.
The State Bank of Pakistan (SBP) said workers’ remittances reached $4.3 billion in May, marking the highest monthly inflow on record.
“In terms of growth, remittances increased by 20.2 percent on m/m and 15.4 percent on y/y basis,” the central bank said in a statement.
The SBP said cumulative remittances during the first 11 months of fiscal year 2025-26 rose 9.2 percent to $38.1 billion, compared with $34.9 billion received during the same period a year earlier.
According to the central bank, Saudi Arabia remained the largest source of remittances in May, with Pakistani workers sending home $1.025 billion during the month. The United Arab Emirates followed closely with $1.007 billion, while remittances from the United Kingdom totaled $645.5 million and inflows from the United States reached $349.8 million.
The latest figures mean Pakistan is on course to record its highest-ever annual remittance inflows. Khurram Schehzad, an adviser to the finance minister, said cumulative remittances had already reached $38.1 billion during July-May and were on track to exceed $41 billion by the end of the fiscal year.
“A powerful vote of confidence by overseas Pakistanis — strengthening external stability and reinforcing Pakistan’s economic resilience,” Schehzad wrote on X.
Pakistan’s overseas workforce is concentrated in the Gulf region, particularly Saudi Arabia and the UAE, which together account for a substantial share of annual remittance inflows. Economists view remittances as a key buffer against external financing pressures because they help support the country’s balance of payments and provide income for millions of households.
