KARACHI: Remittances from Pakistan’s overseas workers rose 15 per cent year-on-year (YoY) to $7.3 billion in the first two months of fiscal year 2026-27, central bank data showed on Wednesday.
Remittances extended their strong run in August, rising 17 per cent from a year earlier to $3.7 billion and edging up 1.0 per cent from July.The amount of money sent by Pakistani migrant workers reached a record high of $41.6 billion in fiscal year 2025-26 that ended in June.
Remittances, a key source of dollar inflows for Pakistan as it seeks to strengthen its external finances, remained robust despite tensions in the Middle East, where many of the country’s workers are employed.
Analysts said a rise in the number of Pakistanis emigrating abroad during the last three to four years, coupled with structural reforms in the local currency market aimed at channelling remittances through official channels, has helped support inflows. Meanwhile, the State Bank of Pakistan’s decision to remove the minimum deposit rate requirement on deposits, except for individuals maintaining balances of Rs10 million or more, is expected to help commercial banks absorb the transaction costs of processing remittances that were previously covered through a subsidy.
Waqas Ghani, head of research at JS Global, said the momentum in remittances remains encouraging, given their importance as a major source of support for Pakistan’s external account.
The State Bank of Pakistan expects workers’ remittances to continue to finance the projected widening in the trade deficit and to rise to $44 billion in FY27.“This would mark slower growth (5.9 per cent) against last year (8.6 per cent) amidst global labour market headwinds and regional constraints on emigration,” the SBP said in a monetary policy report published last month.
“The outlook assumes a gradual recovery in emigration as regional conditions stabilise, and reconstruction-related labour demand in the Middle East gains momentum,” it said. “Under these conditions, the current account deficit is projected to widen in FY27, though it is expected to remain within the range of 0-1 per cent of GDP in FY27,” it added.
