Pakistan records highest-ever monthly remittance inflow

Dubai: Pakistan received a record $4.25 billion in remittances from overseas Pakistanis in May 2026, the highest monthly inflow ever recorded in the country’s history, providing a significant boost to foreign exchange reserves and strengthening the nation’s external account position.

According to data released by the State Bank of Pakistan (SBP) on Wednesday, remittance inflows reached $4.251 billion during May, surpassing all previous monthly records. The figure represents a 20.2 per cent increase compared to April 2026 and a 15.4 per cent rise from the corresponding month last year.

Milestone

The historic milestone underscores the continued confidence of overseas Pakistanis in the country’s economy and highlights their vital contribution to economic stability. Analysts attributed the sharp increase primarily to seasonal transfers associated with Eidul Adha, a period that traditionally witnesses higher remittance flows as overseas Pakistanis send additional funds to support families and communities back home.

The latest figures have also strengthened expectations that Pakistan will achieve its highest-ever annual remittance total during the current fiscal year.

During the first eleven months of FY2025-26, remittances reached $38.1 billion, compared with $34.9 billion received during the same period last year, reflecting a healthy growth of 9.2 per cent.

Landmark achievement

Adviser to the Finance Minister Khurram Schehzad described the May inflow as a landmark achievement, noting that Pakistan had recorded its highest monthly remittance inflow in history.

“This is a resounding testament to the unwavering confidence of overseas Pakistanis, which is further strengthening the country’s economy and external stability,” he said in a statement posted on social media.

He added that with one month remaining in the fiscal year, remittances were poised to exceed $41 billion for the first time ever, setting a new annual record.

Financial analysts believe the strong performance is not solely the result of seasonal factors. Waqas Ghani, Head of Research at JS Global, said that several structural factors continue to support the upward trend, including increasing migration trends, a sustained shift from informal money transfer channels to regulated banking systems, and relatively stable foreign exchange market conditions.

Topline Securities said the strong growth in May was largely driven by Eid-related transfers and projected that total remittances for FY26 would exceed its earlier forecast of $41 billion.

Top countries

A country-wise breakdown showed Saudi Arabia remained the largest source of remittances during May, with overseas Pakistanis sending $1.025 billion. The amount was 12 per cent higher than the same month last year and 22 per cent above April’s inflow.

The United Arab Emirates followed closely, contributing $1.007 billion. Remittances from the UAE surged 33 per cent year-on-year and increased by 37 per cent compared to the previous month, reflecting particularly strong growth from one of Pakistan’s key overseas communities.

The United Kingdom remained another major contributor, with remittances reaching $645 million during May, while inflows from the United States stood at $350 million, up 10 per cent from April.

Meanwhile, remittances from European Union countries totalled $466 million, registering an 8 per cent month-on-month increase.

Remittance impact

Remittances continue to play a crucial role in Pakistan’s economy by supporting household incomes, stimulating consumption, strengthening foreign exchange reserves and helping narrow external financing gaps. The government and financial institutions have also introduced various incentives in recent years to encourage overseas Pakistanis to use formal banking channels for money transfers.