May sees 'highest-ever monthly inflow' of remittances at $4.3bn

Pakistan's economy received a record $4.3 billion in remittances in May, a figure that represents the highest monthly inflow in the country's history, according to data from the State Bank of Pakistan (SBP).

The inflows showed a substantial increase, rising 20.2 percent compared to April and 15.4 percent higher than the same month last year. This surge brings the cumulative remittances for July-May of the fiscal year 2026 to $38.1 billion, a 9.2 percent increase from the previous year's corresponding period.

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highest-ever monthly remittance inflow in history

Saudi Arabia and the United Arab Emirates (UAE) were the primary sources of these remittances, contributing $1.025 billion and over $1.006 billion respectively. The United Kingdom and the United States also made significant contributions. Finance Ministry Adviser Khurram Schehzad expressed optimism that remittances would exceed $41 billion for the first time ever by the end of the fiscal year.

However, currency experts caution that the growth rate may be weaker than in the previous fiscal year. They point to concerns over Pakistan's "managed" exchange rate, suggesting that some remittances might be bypassing official banking channels. While economists sometimes label the increasing number of Pakistanis seeking work abroad as "brain drain," the government considers it a positive factor for the nation's external balance.

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