KARACHI: The State Bank of Pakistan (SBP) received $10.9 billion in workers’ remittances during the first quarter of fiscal year 2026-27, marking a 14% increase from $9.5 billion recorded in the corresponding period last year.
According to a statement issued by the central bank on Friday, remittances reached $3.6 billion in September 2026, registering year-on-year growth of 12.7%. However, inflows declined by 1.9% compared with August.
Saudi Arabia remained the largest source of remittances during September, contributing $899.1 million. The United Arab Emirates followed with $748.5 million, while the United Kingdom and the United States contributed $515.1 million and $305.9 million, respectively.
Pakistan recorded a historic $41.59 billion in workers’ remittances during FY2025-26, providing significant support to the country’s external account and foreign exchange reserves.
Remittances Support Economic Stability
The Institute of Cost and Management Accountants of Pakistan (ICMAP) has highlighted the importance of sustained remittance inflows in cushioning external-sector pressures, strengthening foreign exchange buffers and supporting economic stability.
In a study, ICMAP noted that strong remittances contributed to improved economic conditions that helped support Moody’s upgrade of Pakistan’s sovereign credit rating from Caa1 to B3. However, the institute stressed that the long-term challenge lies in converting this stability into sustainable economic growth.
Pakistan received an additional $3.3 billion in remittances during FY2025-26, but its combined goods and services trade deficit widened significantly. Although remittances helped finance a substantial portion of the external gap, the current account moved from a surplus in FY2024-25 to a modest deficit in FY2025-26.
The institute said the shift demonstrated that remittance inflows, despite their scale, could not independently ensure lasting external-sector stability.
Digital Services Offer New Foreign Exchange Opportunities
ICMAP also identified the growing digital economy as an important opportunity to diversify Pakistan’s foreign exchange earnings.
Alongside workers’ remittances, Pakistan generated more than $10 billion in services exports, while receipts from freelance exports recorded strong growth, according to the study.
The institute said these developments pointed to emerging opportunities for expanding digital services, strengthening export competitiveness and developing more sustainable sources of foreign exchange.
It emphasised that Pakistan must broaden its export base, attract investment, improve productivity and strengthen digital services to reduce dependence on any single source of external inflows.
Remittances remain a vital source of income for millions of households and a major contributor to Pakistan’s external resilience. However, ICMAP stressed that lasting improvements in sovereign creditworthiness will depend on the country’s ability to generate diversified export earnings and achieve productivity-led growth.
