KARACHI: Saudi Arabia remained the largest source of remittances to Pakistan in April, with overseas workers sending $841.7 million, according to data released by the State Bank of Pakistan on Monday.
Remittances are a key source of foreign exchange for Pakistan’s economy, helping finance imports, stabilise the currency and support millions of households. The Gulf region, particularly Saudi Arabia and the United Arab Emirates, accounts for the bulk of inflows due to a large Pakistani expatriate workforce.
Pakistan has seen a sharp rise in remittances over the past two years, with inflows reaching a record $38.3 billion in fiscal year 2025, up 26.6% from $30.3 billion a year earlier, according to central bank data.
The State Bank of Pakistan said workers’ remittances stood at $3.5 billion in April 2026.
It added that remittances rose 11.4% year-on-year but declined 7.6% month-on-month.
Cumulatively, Pakistan received $33.9 billion in remittances during July–April FY26, compared with $31.2 billion in the same period last year, reflecting an 8.5% increase.
After Saudi Arabia, the United Arab Emirates ranked second with $734.7 million, followed by the United Kingdom with $563.7 million and the United States with $317.6 million.
Remittances have consistently remained above the $3 billion monthly mark in recent quarters, helping ease pressure on Pakistan’s external financing needs and widening trade deficit.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd, said the external account outlook remained under pressure as fiscal year 2026 nears completion.
He said elevated crude oil prices and sustained import demand were likely to keep pressure on the current account.
“In this context, remittances have shifted from a supporting buffer to an essential stabiliser,” he said.
Ghani warned that any slowdown in inflows, particularly from Gulf countries, could once again push the external account into deficit.
He said foreign exchange reserve targets had already been revised downward, increasing reliance on external financing, adding that the “margin for error is thin.”
