- Strong Overseas Inflows Support Economy as Experts Call for Better Workforce Development Policies
Karachi: Pakistan received a record $41.58 billion in workers’ remittances through formal banking channels during the fiscal year 2025-26, highlighting the vital role overseas Pakistanis continue to play in supporting the country’s economy despite ongoing geopolitical tensions in key employment markets.
According to Beyond Time News, provisional figures released by the State Bank of Pakistan (SBP) show remittances increased by 8.6% compared with $38.30 billion recorded in FY2024-25, adding nearly $3.29 billion to the country’s foreign exchange inflows.
Overseas Pakistanis Continue to Strengthen the Economy
The record inflows came at a time when many Pakistani workers in the Gulf region faced uncertainty due to regional conflicts and economic challenges.
Despite these conditions, remittances remained one of Pakistan’s most reliable sources of foreign exchange, helping strengthen reserves, support the current account, and improve external financial stability.
According to Beyond Time News, average monthly remittances reached approximately $3.47 billion, with June contributing $3.475 billion. Although June’s figure was slightly below May’s peak of $4.25 billion, it remained higher than the corresponding month a year earlier.
Saudi Arabia and UAE Remain Top Contributors
Saudi Arabia continued to be the largest source of remittances to Pakistan during FY2025-26.
Pakistani workers in the Kingdom sent $9.783 billion, reflecting steady year-on-year growth.
The United Arab Emirates ranked second with $8.807 billion, while Dubai alone accounted for $6.765 billion of that total.
The United Kingdom contributed $6.326 billion, while remittances from European Union countries recorded the fastest growth, reaching $5.227 billion.
Other Gulf Cooperation Council (GCC) countries collectively sent $3.934 billion during the fiscal year.
In contrast, remittances from the United States declined slightly to $3.624 billion.
Digital Banking Supports Higher Inflows
Financial experts attribute the growth partly to increased use of formal banking channels and improvements in digital payment services.
Banks, exchange companies, and fintech platforms have introduced faster and more secure transfer systems, making it easier for overseas Pakistanis to send money home.
Greater confidence in regulated financial channels has also helped reduce reliance on informal transfer networks.
Skilled Workforce Creates New Opportunities
Analysts believe Pakistan could further increase remittance inflows by investing in workforce development and technical education.
Growing demand for skilled professionals in sectors such as information technology, engineering, healthcare, and construction—particularly in Saudi Arabia and other Gulf countries—offers significant employment opportunities.
Experts say aligning vocational training with international labour market requirements could help Pakistan send more highly skilled workers abroad while increasing remittance earnings.
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Experts Call for Long-Term Policy Support
Although remittances continue to grow, economists argue that Pakistan still lacks a comprehensive strategy to support its overseas workforce.
They recommend expanding vocational training, improving pre-departure orientation programmes, strengthening worker welfare initiatives, and creating policies that help skilled professionals access international job markets.
Such reforms could improve overseas employment opportunities while ensuring sustainable growth in remittance inflows over the coming years.
Why Remittances Matter
Workers’ remittances remain one of Pakistan’s most important sources of foreign exchange.
These inflows help finance imports, stabilize the national currency, strengthen foreign exchange reserves, and support millions of households that depend on income sent by family members working abroad.
Higher remittances also contribute to stronger consumer spending and provide additional stability during periods of economic uncertainty.
Looking Ahead
Economists expect remittances to remain resilient if overseas employment opportunities continue expanding and digital financial services become more accessible.
However, they emphasize that long-term growth will depend on developing a highly skilled workforce capable of meeting changing international labour market demands.
Conclusion
Pakistan’s record remittance inflows during FY2025-26 demonstrate the continued importance of overseas workers to the national economy. While improved banking systems and strong labour demand have supported recent growth, experts believe sustained progress will require strategic investment in skills development, worker welfare, and employment-focused policies to maximize future opportunities.
Frequently Asked Questions
How much did Pakistan receive in remittances during FY2025-26?
Pakistan received a record $41.58 billion in workers’ remittances through formal banking channels.
Which country sent the highest remittances to Pakistan?
Saudi Arabia remained the largest contributor, followed by the United Arab Emirates and the United Kingdom.
Why did remittances increase?
Greater use of formal banking channels, digital payment systems, and steady overseas employment contributed to higher remittance inflows.
Why are remittances important for Pakistan?
They strengthen foreign exchange reserves, support the current account, stabilize the economy, and provide income for millions of Pakistani families.
What can Pakistan do to increase remittances further?
Experts recommend investing in technical education, vocational training, worker welfare programmes, and policies that help skilled professionals secure overseas employment.
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