Pakistan received $3.6 billion in overseas workers’ remittances in December 2025, showing a strong 17% year on year growth and a 13% increase from the previous month.
The State Bank of Pakistan data showed remittances during the first half of fiscal year 2026 reached $19.7 billion, up 11% compared to the same period last year.
The remittances growth momentum is continuing on the back of higher manpower exports in previous years, lower differential in formal and informal exchange market and continuation of remittances incentive package, according to Topline Research.
Saudi Arabia remained the top source of remittances in December with inflows of $813 million, up from $771 million in December 2024. This represented an 6% year on year increase and 8% month on month growth.
Transfers from the United Arab Emirates reached $726 million in December, showing a 15% year on year rise and 8% monthly increase from November’s $631 million.
Remittances from the United Kingdom increased to $560 million, a 28% jump compared to last year. The UK continued to show strong growth momentum with 16% month on month increase.
Inflows from the United States came in at $302 million, down 6% year on year but up 9% from November’s $277 million.
European Union countries sent $499 million in December, marking a strong 39% increase year on year and 20% month on month growth.
Remittances from other GCC countries totaled $333 million, up 7% year on year and 12% from the previous month. Other global sources contributed $356 million, showing 34% year on year growth and 24% monthly increase.
Topline Research maintained its fiscal year 2026 remittances target of $41 billion, representing a 7.5% increase from the fiscal year 2025 level of $38 billion.
The steady growth in remittances provides crucial support to Pakistan’s foreign exchange reserves and helps ease pressure on the current account balance.
Analysts attribute the sustained increase to improved economic conditions, competitive exchange rates in formal channels and government incentives that have encouraged overseas Pakistanis to use official banking channels.
The momentum in remittances growth is expected to continue in coming months, supported by higher manpower exports and ongoing policy measures to facilitate formal money transfers.