State Bank of Pakistan reported on Wednesday that Pakistan received $3.8 billion in workers’ remittances in March, marking the highest monthly inflow of the current fiscal year despite continued turbulence caused by the Middle East conflict.
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The March inflow was 17 per cent higher than February’s remittances, although it remained 5 per cent lower than the $4 billion recorded in March of the previous fiscal year.
According to financial analysts, the increase was partly driven by seasonal inflows during Ramazan, while remittances from Gulf countries remained resilient despite regional instability.
Overall remittances during July–March of FY26 rose to $30.321 billion, up 8.2 per cent from $28 billion in the same period last fiscal year.
Remittances continue to play a critical role in Pakistan’s economy, helping the country manage its trade deficit, repay external debt, and support foreign exchange reserves.
The central bank also disclosed that it had paid $1.4 billion in Eurobond maturities and faces an additional $3.5 billion outflow to the UAE this month. These payments are expected to reduce foreign exchange reserves, which stood at approximately $16.5 billion as of March 27.
Financial experts said Pakistan remains constrained in accessing international bond markets, while commercial borrowing has become more difficult due to elevated risk perceptions.
They added that a lasting ceasefire in the Middle East could improve Pakistan’s economic outlook, particularly by stabilising energy prices, as the country relies heavily on imported oil and gas.
Saudi Arabia remained the largest source of remittances, sending $7.086 billion during the first nine months of FY26, up 3 per cent year-on-year.
The United Arab Emirates followed with $6.267 billion in remittances, reflecting a 10 per cent increase despite recent regional tensions.
Remittances from the United Kingdom rose 8.4 per cent to $4.6 billion, while inflows from European Union countries surged 20 per cent to $3.9 billion. GCC countries contributed $2.891 billion, up 5 per cent, whereas remittances from the United States declined 5.7 per cent to $2.661 billion.
Analysts believe that if peace returns permanently to the Gulf region, reconstruction and economic recovery efforts could create further employment opportunities for Pakistani workers abroad.
