Overseas Pakistanis sent $3.7 billion in workers’ remittances during August 2026, providing fresh support to the country’s external account and foreign exchange reserves.
The State Bank of Pakistan reported that inflows increased by 16.5% compared with August last year. Remittances also edged up by 0.7% from the previous month.
The monthly increase kept Pakistan on a strong trajectory at the beginning of fiscal year 2026-27. Remittances remain a key source of foreign currency for the country and help finance imports and external payments.
Two-Month Remittances Reach $7.3 Billion
Pakistan received $7.3 billion in remittances during July and August of FY27, the central bank said. This marked growth of 14.7% from the same period last year.
Overseas workers had sent $6.4 billion during the first two months of FY26. The latest figures therefore show an increase of about $900 million within one year.
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Sustained growth through formal banking channels can help improve dollar liquidity and reduce pressure on Pakistan’s balance of payments. It also supports household spending in regions that depend heavily on income from family members working abroad.
The August figure followed remittances of roughly $3.6 billion in July. The latest month-on-month increase suggests that inflows maintained their momentum despite economic uncertainty in several host countries.
Saudi Arabia Remains Largest Source
Saudi Arabia remained Pakistan’s biggest remittance corridor in August. Pakistani workers based there sent $873.5 million during the month.
The United Arab Emirates ranked second with inflows of $749.8 million. Pakistan received another $563.7 million from the United Kingdom and $308.9 million from the United States.
Together, these four corridors contributed almost $2.5 billion, representing roughly two-thirds of total remittances recorded during August.
The figures also underline Pakistan’s reliance on Gulf labour markets. Saudi Arabia and the UAE alone contributed more than $1.6 billion during the month.
Economic conditions, employment policies and geopolitical tensions in the Gulf can therefore influence Pakistan’s remittance outlook. However, the latest data show that inflows have remained resilient so far.
Pakistan Targets $44 Billion in FY27
Pakistan received more than $41 billion in workers’ remittances during FY26, according to the central bank. The SBP expects the figure to reach $44 billion in FY27.
Speaking in August, SBP Governor Jameel Ahmad said that “overseas Pakistanis have expressed their confidence in the country’s economic progress through record remittances.”
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The central bank expects higher remittances and a low current account deficit to strengthen Pakistan’s reserve position. SBP-held foreign exchange reserves reached $18.4 billion at the end of FY26.
The central bank expects its reserves to exceed $21 billion during FY27. Continued remittance growth will remain crucial to achieving that projection and limiting Pakistan’s dependence on external borrowing.
The 14.7% increase during the first two months means Pakistan has already received nearly one-sixth of its $44 billion annual projection. Maintaining the current pace would keep the country close to that target.
