Pakistan Receives $3.5 Billion in Remittances in January, Saudi Arabia Leads Inflows

Pakistan received $3.5 billion in foreign remittances in January 2026, the State Bank of Pakistan (SBP) said on Tuesday, with Saudi Arabia once again emerging as the largest contributor to inflows that remain vital for the country’s fragile economy.

Remittances play a central role in supporting Pakistan’s external position. The funds sent home by overseas workers help boost foreign exchange reserves, ease pressure on the current account and support the stability of the national currency.

“Workers’ remittances recorded an inflow of $3.5 billion during January 2026,” the SBP said in a statement. According to the central bank, the figure represents a 15.4% increase compared to January last year.

Cumulative inflows during the first seven months of the current fiscal year, spanning July to January, reached $23.2 billion. This marks an 11.3% rise from the $20.9 billion recorded during the same period in the previous fiscal year.

Saudi Arabia remained the top source of remittances in January, with Pakistani workers sending $739.6 million from the kingdom. The United Arab Emirates followed closely, contributing $694.2 million. The United Kingdom ranked third with $572.1 million in inflows, while remittances from the United States totaled $294.7 million during the month.

The steady growth in remittances reflects both continued labor migration and efforts by the government to channel transfers through formal banking systems. According to SBP data, Pakistan received a record $38.3 billion in remittances during fiscal year 2024-25, compared to about $30.3 billion the previous year.

Millions of Pakistanis are employed abroad, particularly in Gulf countries, as well as in Europe and North America. The money they send home provides essential financial support to families, covering daily expenses, education and healthcare costs.

In recent years, Islamabad has taken steps to encourage overseas Pakistanis to use official banking channels rather than informal networks such as hawala and hundi. Authorities have introduced incentives for remitters and tightened enforcement against illegal money transfer systems.

Economists say sustained remittance inflows are crucial as Pakistan navigates economic challenges, including high external financing needs and pressure on its balance of payments. Strong monthly inflows provide breathing space for policymakers seeking to maintain financial stability and rebuild reserves.

The latest figures underscore the continued importance of overseas workers to Pakistan’s economy, with Gulf countries maintaining their position as the primary source of remittance support.