Annual remittance inflows hit a record $41.59 billion in FY2025-26 despite seasonal decline in June
ISLAMABAD: Pakistan remittances in June 2026 fell 18% month-on-month to $3.48 billion, mainly due to a high base in the previous month during the festive season, while annual inflows climbed to a record $41.59 billion in fiscal year 2025-26 (FY26), according to research based on State Bank of Pakistan (SBP) data.
Remittances in June were 2% higher year-on-year compared with the same month last year but declined from May’s elevated level as seasonal inflows eased.
The strong annual performance lifted cumulative remittances to $41.59 billion in FY26, representing a 9% increase from $38.30 billion received in FY25.
Saudi Arabia Remains Top Remittance Source
Saudi Arabia remained Pakistan’s largest source of remittances during June, with overseas Pakistanis sending $830 million, compared with $823 million in the corresponding month last year.
The United Arab Emirates (UAE) ranked second, contributing $792 million, up 10% year-on-year. The United Kingdom accounted for $515 million, while inflows from the United States stood at $297 million.
Remittances from other Gulf Cooperation Council (GCC) countries totalled $321 million, while transfers from the European Union reached $415 million during the month.
FY26 Remittances Reach Record High
Pakistan remittances in June 2026 contributed to total inflows of $41.59 billion during FY26, broadly in line with the brokerage’s forecast of $41.6 billion.
Among the major contributors during the fiscal year:
Saudi Arabia: $9.78 billion (up 5% year-on-year)
United Arab Emirates: $8.81 billion (up 12%)
United Kingdom: $6.33 billion (up 7%)
United States: $3.62 billion (down 3%)
European Union: $5.23 billion (up 15%)
Other countries: $3.88 billion (up 20%)
Remittances Continue Supporting External Account
Analysts said the record remittance inflows are expected to continue supporting Pakistan’s external account by strengthening foreign exchange reserves and easing pressure on the country’s balance of payments.
They noted that the month-on-month decline in Pakistan remittances in June 2026 followed exceptionally strong inflows in May and reflected seasonal factors rather than a weakening trend.
The overall trajectory of remittances remained positive throughout FY26, underlining the continued contribution of overseas Pakistanis to Pakistan’s economy.