Pakistan registers $3.7bn in remittances for August 2026

In August 2026, Pakistan received a total of $3.656 billion in overseas workers' remittances, according to State Bank of Pakistan data. This marked a 16.5% increase year-on-year and a 0.7% rise compared to the previous month. Cumulatively, remittances grew by 14.7% from July to August of fiscal year 2027 (FY27), reaching $7.3 billion compared to $6.4 billion in the same period last year. Analysts forecast remittances for FY27 to total $43.7 billion.

Remittances play a crucial role in supporting Pakistan's external account, boosting economic activity, and enhancing the incomes of households reliant on these funds. However, there are concerns that excessive dependence on remittances may not be sustainable, potentially leading to import-driven growth and issues akin to Dutch disease. The government encourages remittances through incentives and formal channels to maintain steady growth and reinforce their importance in economic stability.

The majority of remittances come from Overseas Pakistanis residing in Saudi Arabia, who sent $873.5 million in August 2026, a 19% increase from $737 million in August 2025. This figure, however, dropped by 4% compared to July 2026. Remittances from the United Arab Emirates saw a 17% year-on-year increase, rising from $643 million in August 2025 to $749.8 million in August 2026. On a monthly basis, these inflows grew by 2% to $737 million, up from $737 million in July 2026.

In August 2026, remittances from the UK amounted to $563.7 million, representing a 22% increase from $463 million in the same month last year. Overseas Pakistanis in the United States sent $308.9 million in August, marking a 16% rise from $267 million in the previous year. Nonetheless, remittances from the US experienced a 2% decrease on a monthly basis. Remittances from European Union countries totaled $496 million in August, reflecting a 7% increase compared to July.