Overseas Pakistanis Send $3.5 Billion in January as Remittances Rise 15%
Overseas Pakistanis sent home $3.46 billion in workers’ remittances during January 2026, reflecting a strong performance despite a slight monthly decline, according to data released by State Bank of Pakistan on Tuesday. The January inflow marked a year-on-year increase of nearly 15.4 percent compared to $3.0 billion recorded in the same month last year, although it was around 4 percent lower than the $3.59 billion received in December 2025.
Cumulatively, remittance inflows during the first seven months of the current fiscal year stood at $23.2 billion, showing an increase of 11.3 percent from $20.9 billion recorded in the corresponding period of the previous fiscal year. The steady rise highlights the continued importance of overseas Pakistanis in supporting the country’s external sector.
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Market analysts attribute the sustained growth to several structural factors. According to Topline Securities, the momentum in remittances is being driven by higher manpower exports in recent years, a reduced gap between formal and informal exchange rates, and the continuation of the government’s remittance incentive schemes. The brokerage house noted that its remittance target for the full fiscal year 2026 is $41 billion, representing a 7.5 percent increase from the $38 billion recorded in FY25.
Remittances remain a critical pillar of Pakistan’s economy, providing support to the external account, boosting overall economic activity, and supplementing the disposable incomes of millions of households that depend on money sent from abroad. To maintain this inflow, the government continues to encourage the use of formal banking and financial channels.
The central bank has previously highlighted the role of the Pakistan Remittance Initiative, launched in 2009, in strengthening formal remittance flows. Through active engagement with financial institutions, the number of banks and exchange companies participating in the initiative has expanded significantly over the years. Alongside conventional and Islamic banks, microfinance banks, exchange companies, and electronic money institutions are now part of the remittance ecosystem, while the number of international partner entities has grown substantially since the initiative’s launch.
Country-wise data for January 2026 shows that Saudi Arabia remained the largest source of remittances, with overseas Pakistanis sending $740 million. While this figure was 2 percent higher on a yearly basis, it declined by 9 percent compared to December, when inflows from the Kingdom stood at $813 million.
Remittances from the United Arab Emirates also showed a solid increase, rising 12 percent year-on-year to $694 million in January. Inflows from the United Kingdom reached $572 million during the month, up slightly from $560 million in December and registering a strong 29 percent increase compared to the same period last year.
Pakistanis residing in the United States sent $295 million in January 2026, reflecting a marginal year-on-year decline of 1 percent and a 2 percent decrease compared to the previous month. Meanwhile, remittances from European Union countries showed notable growth, amounting to $480 million in January and posting a sharp 36 percent increase on a yearly basis.
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