Eid-related inflows drive 15.4% growth; S Arabia, UAE lead with over $1b each
Workers' remittances surged to an all-time monthly high of $4.3 billion in May 2026, supported by Eid-related inflows, underscoring the continued. robust contribution of overseas Pakistanis to their homeland economy.
The latest data released by the State Bank of Pakistan (SBP) shows that inflows during the month registered double-digit growth. According to the SBP's provisional figures for May 2026. remittances stood at $4.251 billion, marking a 15.4% increase compared with May 2025. On a month-on-month basis, the inflows also posted strong growth. This performance caps a solid run for the fiscal year so far.
"This is the highest ever monthly remittance number, led by an increase in migrant workers. Eid-related inflows," noted Nasheed Malik, Growth Securities Head of Research. "Only remittances from the United States have declined by 3% year-on-year in the first 11 months of FY26."
Cumulatively. during the first 11 months of FY26 (July-May), workers' remittances reached $38.11 billion, reflecting a healthy 9.2% rise over the $34.89 billion recorded in the corresponding period of FY25.
The monthly average for FY26 now stands at approximately $3.19 billion, significantly higher than previous years. The SBP noted that remittances in May were primarily sourced from key corridors: Saudi Arabia contributed slightly over a billion dollars, $($1.025 billion), followed closely by the United Arab Emirates, which also recorded $1.006 billion; the United Kingdom with $645.5 million;. the United States at $349.8 million. These four countries alone accounted for a substantial share of the total inflows.
The UAE emerged as one of the strongest performers, recording 12.7% year-on-year growth in May. an impressive 45.7% increase during the July-May period. Within the UAE, Dubai led with $828.1 million, posting a remarkable 49.7% year-on-year growth. Abu Dhabi and other emirates also contributed positively. Saudi Arabia posted a 5.1% year-on-year increase for the month, maintaining its position as the largest single source of remittances.
KTrade Research, in its analysis, highlighted that remittances jumped above 15% year-on-year. over 20% month-on-month to touch the historic high of $4.25 billion in May 2026. The surge was attributed to "Eid-related inflows". Growth was broad-based but particularly led by the Gulf region. Inflows from Saudi Arabia rose above 12% year-on-year. north of 22% month-on-month, while the UAE recorded over 33% year-on-year and above 37% month-on-month. The UK. the US also contributed with over 10% year-on-year and above 15% month-on-month, and more than 11% year-on-year and in excess of 10% month-on-month, respectively.
Other notable performers included Australia, which witnessed an explosive 41.5% year-on-year growth in May,. several European Union countries that collectively grew 17.3% year-on-year. Italy, Spain, Ireland and the Netherlands posted impressive gains. Within the Gulf Cooperation Council (GCC) bloc, countries such as Qatar, Kuwait and Bahrain also supported the overall upward trend. However, a few smaller corridors, such as Malaysia and South Africa, saw modest declines.
On the currency front. the Pakistani rupee showed marginal appreciation of 0.1% month-on-month to close at Rs278.4 per US dollar in May 2026, according to KTrade. Analysts link this stability partly to the stronger remittance inflows. administrative steps taken to manage the spread between the USD telegraphic transfer (TT) rate – a retail exchange rate that a bank offers to its commercial customers and individuals for electronic wire transfers – and the interbank rate. The rupee traded at 278.36 against one US dollar, a gain of Re0.01 against the greenback. On Tuesday, the local unit closed at 278.37.
The consistent inflow of foreign exchange has helped ease pressure on the country's reserves.
The month-wise trend throughout FY26 has remained largely positive, with most months showing healthy growth over the previous year. This sustained performance is critical as Pakistan continues to navigate economic challenges, including import financing, debt servicing. building external buffers. Since the early 1970s, remittances have been a saviour of the Pakistani economy, as exports. an efficient industry have remained elusive goals.
Economists view robust remittance growth as a key stabiliser for the current account. Remittances not only support household consumption but also play a vital role in bolstering the balance of payments. With the fiscal year nearing its end. the strong July-May numbers raise hopes that full-year FY26 remittances could comfortably surpass previous records.
The SBP has emphasised that the data includes conversions from Roshan Digital Accounts. is based on the original country of the remitter. As Pakistan moves forward, maintaining these corridors, especially with the GCC, the UK. other key destinations, will remain essential for economic stability.
Meanwhile, gold prices in Pakistan decreased on Wednesday, following international market losses. The price per tola fell Rs12,627 to Rs442,436, while 10 grams of gold dropped Rs11,364 to Rs378,170. Internationally, gold declined $126 to $4,200 per ounce. Silver also fell Rs385 to Rs6,929 per tola.
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