Pakistani economy received a big boost as workers’ remittances soared to a record $ 4.25 billion in May 2026, up by 15% as compared to the same month last year. Exports remained steady at $2.37 billion and imports eased to $5.69 billion with this record inflow, helping offset the country’s goods trade deficit, according to State Bank of Pakistan (SBP) data. As a result, the country’s cumulative external balance for July-May FY26 became positive at $255 million with four monthly surpluses in the last five months.

The growth in remittances is an indication of the continued confidence of overseas Pakistanis and their important role in supporting the national economy. Saudi Arabia and the UAE were the biggest contributors, with inflows above $2 billion between them. According to recent SBP figures, total remittances during July-May FY26 increased by 9.2% from the previous year to $38.1 billion.

The strong external account position has helped stabilise foreign exchange reserves, bolster the rupee and ease inflationary pressures, say economic analysts. Pakistan seems to be in a better position to keep economic stability and improve investor confidence in the coming months as remittances are expected to cross $41 billion by the end of FY26.

Credit: Independent News Pakistan (INP)