By Farooq Awan

Pakistan’s remittances increased by 10.5 percent to $26.5 billion during Jul-Feb FY2026, with inflows from Saudi Arabia and the United Arab Emirates accounting for the largest shares, according to the Monthly Economic Update & Outlook released by the Finance Division.

The growth in remittances reflects continued inflows from overseas Pakistanis, providing a key source of foreign exchange and supporting the country’s external account.

Saudi Arabia remained the largest contributor, accounting for 23.3 percent of total remittances during the period. The United Arab Emirates followed with a 20.6 percent share, highlighting the importance of these two countries in sustaining inflows.

The increased remittances played a central role in supporting the external sector, particularly amid rising imports and a widening trade deficit.

During Jul-Feb FY2026, total remittance inflows reached $26.5 billion, compared to $24.0 billion in the same period last year, reflecting a steady upward trend.

On a monthly basis, remittances also showed growth. In February 2026, inflows stood at $3.3 billion, compared to $3.1 billion recorded in February 2025.

The continued rise in remittances contributed to easing pressure on the current account, helping offset the impact of higher import payments.

The report highlights that remittances remain one of the most stable components of the external account, providing consistent inflows throughout the fiscal year.

These inflows also support foreign exchange reserves and contribute to overall liquidity in the external sector.

At the same time, remittances continue to support household incomes and consumption, particularly in regions with a high concentration of overseas workers.

The data indicates that inflows from key host countries remained strong, with Saudi Arabia and the UAE continuing to account for a significant share of total remittances.

Overall, the increase in remittances during FY2026 underscores their importance in supporting Pakistan’s external balance, particularly amid rising import demand and limited growth in exports.

Credit: INP-WealthPk