Pakistani workers' remittances surge to $3.5bn in January

• January inflows hit record level for month.
• KSA, UAE remain largest remittance sources.
• FY26 inflows seen strengthening external account stability.

Pakistani workers’ remittances climbed sharply to $3.5 billion in January 2026, marking a 15.4% year-on-year increase, according to figures released by the State Bank of Pakistan (SBP).

On a cumulative basis, remittances reached $23.2 billion during the first seven months of the ongoing fiscal year (July-January FY26), reflecting an 11.3% rise compared with $20.9 billion received in the corresponding period of last year.

The central bank, in the press release, said inflows in January were primarily sourced from the Kingdom of Saudi Arabia, which contributed $739.6 million, followed by the United Arab Emirates with $694.2 million, the United Kingdom with $572.1 million and the United States with $294.7 million.

Sana Tawfik, Head of Research at Arif Habib Limited, said remittances had never reached this level in any previous January.

Speaking to Geo.tv, she attributed the sustained strength in inflows mainly to a larger number of Pakistanis working overseas, improved stability of the rupee and a narrowing gap between formal and informal exchange markets, which has encouraged senders to route funds through banking channels.

She added that periods of geopolitical uncertainty can also trigger higher remittance flows, though this factor was currently less pronounced than the structural drivers supporting inflows.

Referring to guidance shared by the SBP governor in the most recent monetary policy briefing, Tawfik said remittances were expected to exceed $41 billion and could approach $42 billion in FY26 if the present trend continues.

"Achieving this level would be the highest on record for any fiscal year and would play a key role in supporting Pakistan’s external account, while also helping keep the current account deficit within the central bank’s projected range of 0% to -1% of GDP," she added.

Separately, Topline Securities, in its Economy Alert dated February 10, 2026, said Pakistan’s remittances stood at $3.5 billion in January, rising 15% on a year-on-year basis but declining 4% compared to December.

The brokerage noted that total remittances for the first seven months of FY26 amounted to $23.2 billion, up 11% from the same period last year.

Topline said the ongoing growth momentum was being driven by stronger manpower exports in previous years, a reduced differential between formal and informal exchange markets and the continuation of the government’s remittance incentive package.

It maintained its full-year remittance projection for FY26 at $41 billion, representing a 7.5% increase over FY25 inflows of $38 billion.

Topline Securities’ Maaz Mulla told Geo.tv that remittances posted a healthy 15% increase, led by strong growth from the UK and EU. “Overall, cumulative inflows for 7MFY26 remain robust, up 11% YoY, indicating sustained support from overseas Pakistanis.”