Saudi Arabia and UAE Boost Pakistan's Remittances to Record $41.6 Billion

Jul 9, 2026

66 min

Jul 9, 2026 11:30

Saudi Arabia, UAE drive Pakistan remittances to record $41.6bn

## Record Remittance Inflows

Pakistan's remittances reached an unprecedented $41.6 billion in the fiscal year 2025-26, marking an 8.6% increase from the previous year. This growth was primarily driven by contributions from Saudi Arabia and the United Arab Emirates, which together accounted for nearly half of the total inflows.

## Key Contributors

Saudi Arabia emerged as the largest source, sending $9.78 billion, followed by the UAE with $8.81 billion. Other significant contributors included the United Kingdom and European Union countries, which sent $6.33 billion and $5.23 billion, respectively.

## Monthly Trends

In June, remittances totaled $3.5 billion, a 2% increase compared to the same month last year. However, this was an 18.3% decrease from May's peak of $4.25 billion, attributed to Eid-related transfers.

## Economic Impact

The robust remittance inflows have been hailed as a historic milestone by Khurram Shehzad, an adviser to Pakistan's prime minister, highlighting the confidence of overseas Pakistanis in their home country's economy. Dr. Khaqan Najeeb, a former finance ministry adviser, emphasized the role of these inflows in strengthening Pakistan's external sector.

## Future Outlook

Despite the strong remittance performance, experts suggest that Pakistan should focus on enhancing exports, productivity, and investment to complement these inflows. The State Bank of Pakistan anticipates a slight current account surplus for FY26, supported by these remittances and service exports.

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