Pakistan received a record $4.251 billion in workers’ remittances during May 2026, marking the highest monthly inflow in the country’s history and providing a major boost to foreign exchange reserves and economic stability.
Data released by the State Bank of Pakistan (SBP) on Wednesday showed remittances rose 20.2% compared to April and increased 15.4% from the same month last year.
The strong performance pushed total remittance inflows for the first 11 months of fiscal year 2025-26 to $38.1 billion, up 9.2% from $34.9 billion recorded during the corresponding period a year earlier.
The latest figures reinforce the growing importance of overseas Pakistanis in supporting the country’s external account at a time when policymakers continue efforts to strengthen economic recovery and maintain financial stability.
Topline Securities attributed the surge primarily to seasonal Eid-related transfers.
“The strong growth was primarily driven by Eid-related seasonal inflows, as remittances typically increase during festive periods,” the brokerage house said in a research note.
The firm added that total remittances for FY26 are likely to exceed $41 billion, setting another historic milestone.
Overseas Pakistanis Drive Historic Surge
Pakistan’s average monthly remittance inflow during the first 11 months of FY26 reached $3.5 billion, compared with $3.2 billion during the previous fiscal year.
Waqas Ghani, Head of Research at JS Global, said the improvement reflected deeper structural changes rather than temporary factors alone.
“This improvement continues to reflect structural factors like higher emigration volumes, sustained shift from hawala to formal banking channels, and relatively stable FX spreads in the interbank market.”
He added that regional geopolitical developments may have accelerated remittance flows in recent months.
Remittances remain one of Pakistan’s largest sources of foreign exchange and play a critical role in supporting household incomes, domestic consumption and balance-of-payments stability.
The government and the central bank have also encouraged overseas Pakistanis to use formal banking channels through various incentive schemes and digital transfer mechanisms.
Saudi Arabia and UAE Lead Inflows
Saudi Arabia remained the largest source of remittances during May.
Pakistanis living in the kingdom sent $1.025 billion, compared with $914 million in the same month last year and $842 million in April.
The United Arab Emirates followed closely with remittances reaching $1.007 billion. The amount increased 33% year-on-year and jumped 37% from the previous month.
The United Kingdom remained another major contributor, with overseas Pakistanis sending $645 million in May.
Remittances from the United States reached $350 million, reflecting a 10% monthly increase from April.
Meanwhile, inflows from European Union countries rose to $466 million, up 8% from the previous month.
Adviser to the Finance Minister Khurram Schehzad described the achievement as a major vote of confidence in Pakistan’s economy.
“This is a resounding testament to the unwavering confidence of overseas Pakistanis, which is further strengthening the country’s economy and external stability,” he wrote on X.
“With the last month of the fiscal year, remittances are all set to surpass $41 billion for the first time in history!”
