Pakistan records highest-ever monthly remittances at $4.3b: SBP

Pakistan received its highest-ever monthly inflow of workers’ remittances in May, with overseas Pakistanis sending $4.3bn during the month, according to data released by the State Bank of Pakistan (SBP) on Wednesday.

The central bank said workers’ remittances “recorded an inflow of US$4.3 billion” in May, representing a 20.2% increase compared with the previous month and a 15.4% rise from the same period last year.

In a post on X, the SBP described the figure as the latest monthly remittance inflow recorded by the country.

In a statement issued by the Prime Minister’s Office, Prime Minister Shehbaz Sharif, expressing satisfaction, said the record remittance inflow reflected the confidence of overseas Pakistanis in the country’s economy.

He noted that remittances sent by overseas Pakistanis increased by 20.2% on a monthly basis and 15.4% year-on-year in May, describing the growth as “highly encouraging”.

“The trust of overseas Pakistanis in the national economy and their positive contribution are a valuable national asset,” the prime minister said.

Commenting on the data, Finance Minister’s Adviser Khurram Schehzad said Pakistan had recorded its “highest-ever monthly remittance inflow in history”.

“Workers’ remittances surged to a record $4.25 billion in May 2026, up over 20% MoM and over 15% YoY,” he said on X.

He described the increase as “a powerful vote of confidence by overseas Pakistanis”, adding that it was “strengthening external stability and reinforcing Pakistan’s economic resilience”.

Schehzad said remittance inflows during the current fiscal year had continued to grow and were on course to reach a new milestone. “With one month remaining in FY26, remittances are on track to exceed well beyond $41 billion for the first time ever,” he said.

The record remittance inflow comes at a time when there are growing concerns that a prolonged conflict in the Gulf could affect future inflows.

Also Read: Falling remittances and rising energy prices: a double whammy

Rising oil prices, fuelled by fears of supply disruptions through key routes such as the Strait of Hormuz, are already putting pressure on Pakistan’s external accounts. In that environment, remittances remain an important source of support, helping to offset trade deficits and support the rupee.

Remittances constitute roughly 9-10% of Pakistan’s GDP, a proportion that underscores their macroeconomic importance as compared to other beneficiaries of such inflows in the region. These inflows finance a significant portion of the trade deficit, support foreign exchange reserves, and sustain household consumption across the country.

Remittances contribute significantly to deposit growth and foreign currency liquidity.

Saudi Arabia and the United Arab Emirates together contribute over $11 billion annually, accounting for more than a third of Pakistan’s total remittances. This effectively ties a majority of the country’s “dollar liquidity” to a single geopolitical corridor.