Remittances from Overseas Pakistanis - Updates

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Govt eyes $42.4bn in remittances​

Shahid Iqbal
June 13, 2026

KARACHI: The government has not only increased the remittances target but also projected a significantly higher current account deficit (CAD) for FY27.

The government set $3.6 billion CAD for FY27, which would be around 0.7 per cent of the GDP, compared to the revised deficit target of $1.1bn or 0.2pc for FY26. So far, the current account deficit during July-April FY26 is $252 million against $1.662bn surplus during the same period the preceding year.

The main reason for the CAD was the widened trade deficit during the current fiscal year, which has reached $35bn in the first 11 months of FY26.

The export target for FY27 is $32.9bn, while the import target is set as $70bn, showing a trade deficit of $37.1bn. This large trade deficit would certainly force the current account deficit to expand in FY27.
 
The government has set a $42.4bn remittances target for FY27, compared with $41.3bn for FY26. The remittances for FY26 were affected by the Gulf war, but inflows continued at the same pace; instead, they increased to a record $4.3bn in May FY26.

With the higher inflows, it seems the total would exceed the earlier target of $41.3bn set for FY26 on 30th June. The government had revised the target to $40bn in the wake of the Gulf war, which started on Feb 28.

According to the State Bank, the country received a total of $38.109bn during July-May FY26, compared to $34.829bn in the same period of the last fiscal year, representing growth of 9.2pc, down from 28.8pc in FY25.

The government set a higher target of $42.4b for remittances, as it observed that the Gulf war did not impact remittances; however, some financial experts expressed fear that rich Pakistanis were returning, particularly from Dubai, and that their remittances surged, boosting overall inflows for Pakistan.
 
ghazi52 said:

Govt eyes $42.4bn in remittances​

Shahid Iqbal
June 13, 2026

KARACHI: The government has not only increased the remittances target but also projected a significantly higher current account deficit (CAD) for FY27.

The government set $3.6 billion CAD for FY27, which would be around 0.7 per cent of the GDP, compared to the revised deficit target of $1.1bn or 0.2pc for FY26. So far, the current account deficit during July-April FY26 is $252 million against $1.662bn surplus during the same period the preceding year.

The main reason for the CAD was the widened trade deficit during the current fiscal year, which has reached $35bn in the first 11 months of FY26.

The export target for FY27 is $32.9bn, while the import target is set as $70bn, showing a trade deficit of $37.1bn. This large trade deficit would certainly force the current account deficit to expand in FY27.
Click to expand...


Pakistan ki misaal us ghar jaisi hy jisky 12 bety hy or unme se sirf aik ko Dubai bejh Dia hy mazdoori krne jabky peachy 11 bhai or maa baap us aik ki kamae khaa rahy hy Beth ky.
 
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SBP projects stronger FY27 outlook with 4% growth, $44 billion remittances​

Jameel Ahmad says FY26 growth is expected at 3.75% to 4.75%, above the government’s provisional 3.7%, while remittances likely crossed $41.5 billion before rising further next year

State Bank of Pakistan (SBP) Governor Jameel Ahmad on Friday projected Pakistan’s GDP growth at around 4% in FY27, mainly driven by industrial sector expansion, while workers’ remittances are expected to rise further to $44 billion.

Speaking at a press conference, Ahmad said economic activity had gained momentum, and FY26 growth was likely to remain above the government’s provisional estimate of 3.7%.

He said GDP growth for FY26 was expected in the range of 3.75% to 4.75%.


Ahmad said the central bank had earlier expected growth of more than 4%, but the ongoing Middle East crisis had weighed on the outlook.

According to the briefing details, large-scale manufacturing growth averaged 6% during the year, with some months recording growth of up to 10%.

The SBP governor said preliminary estimates showed workers’ remittances would exceed $41.5 billion in FY26, despite recent geopolitical pressures in the region.

During July-May FY26, remittances increased 9.2% to $38.1 billion from $34.9 billion in the same period last year.


Ahmad said the SBP expects remittance inflows to increase further to $44 billion in FY27.

He said the central bank had ended subsidies under the Sohni Dharti Remittance Program and the Telegraphic Transfer Charges Incentive Scheme.

However, he said commercial banks and exchange companies would continue to incentivise remittance inflows, while customers would continue to receive remittance services free of charge.

Ahmad said Pakistan’s foreign exchange reserves held by the central bank rose to $18.4 billion at the end of FY26 from $13 billion a year earlier.


He said reserves improved despite external debt repayments of $8 billion in June alone.

The governor added that reserves would have been around $23 billion if external debt repayments made during the year were excluded.

He said Pakistan’s external position had improved over the past three years, with reserves rising from around $3 billion to $18.4 billion while total external debt remained broadly unchanged at around $100 billion since FY22.

Ahmad said banks’ outstanding foreign exchange liabilities had declined from $5.8 billion in FY23 to $950 million at the end of FY26.


The SBP governor said the government’s external debt profile had improved, with a gradual shift away from short-term commercial borrowing towards longer-tenor multilateral financing with maturities of 20 to 25 years.

He said the current account had turned around from a deficit of $17.5 billion, or 4.7% of GDP, in FY22 to a deficit of $3.3 billion in FY23 and $2.1 billion in FY24, before posting a surplus of $2.1 billion, or 0.5% of GDP, in FY25.

The current account remained in surplus during 11MFY26, with the SBP projecting the full-year balance within 0% to 1% of GDP.

The governor said Roshan Digital Account inflows had also improved, averaging around $300 million per month after recent changes to the scheme’s operating framework.


On inflation, Ahmad said average FY26 inflation stood at around 7.04%, close to the SBP’s medium-term target range of 5% to 7%.

However, inflation rose to 11.1% year-on-year in June 2026 after the recent increase in petroleum product prices.

Ahmad said export earnings are projected to increase in FY27, reversing the decline recorded in FY26.

Pakistan’s trade deficit widened to $39.47 billion in FY26, up 21.57% from the previous fiscal year, according to Pakistan Bureau of Statistics data released on Thursday.
 
hydrabadi_arab said:

SBP projects stronger FY27 outlook with 4% growth, $44 billion remittances​

Jameel Ahmad says FY26 growth is expected at 3.75% to 4.75%, above the government’s provisional 3.7%, while remittances likely crossed $41.5 billion before rising further next year

State Bank of Pakistan (SBP) Governor Jameel Ahmad on Friday projected Pakistan’s GDP growth at around 4% in FY27, mainly driven by industrial sector expansion, while workers’ remittances are expected to rise further to $44 billion.

Speaking at a press conference, Ahmad said economic activity had gained momentum, and FY26 growth was likely to remain above the government’s provisional estimate of 3.7%.

He said GDP growth for FY26 was expected in the range of 3.75% to 4.75%.


Ahmad said the central bank had earlier expected growth of more than 4%, but the ongoing Middle East crisis had weighed on the outlook.

According to the briefing details, large-scale manufacturing growth averaged 6% during the year, with some months recording growth of up to 10%.

The SBP governor said preliminary estimates showed workers’ remittances would exceed $41.5 billion in FY26, despite recent geopolitical pressures in the region.

During July-May FY26, remittances increased 9.2% to $38.1 billion from $34.9 billion in the same period last year.


Ahmad said the SBP expects remittance inflows to increase further to $44 billion in FY27.

He said the central bank had ended subsidies under the Sohni Dharti Remittance Program and the Telegraphic Transfer Charges Incentive Scheme.

However, he said commercial banks and exchange companies would continue to incentivise remittance inflows, while customers would continue to receive remittance services free of charge.

Ahmad said Pakistan’s foreign exchange reserves held by the central bank rose to $18.4 billion at the end of FY26 from $13 billion a year earlier.


He said reserves improved despite external debt repayments of $8 billion in June alone.

The governor added that reserves would have been around $23 billion if external debt repayments made during the year were excluded.

He said Pakistan’s external position had improved over the past three years, with reserves rising from around $3 billion to $18.4 billion while total external debt remained broadly unchanged at around $100 billion since FY22.

Ahmad said banks’ outstanding foreign exchange liabilities had declined from $5.8 billion in FY23 to $950 million at the end of FY26.


The SBP governor said the government’s external debt profile had improved, with a gradual shift away from short-term commercial borrowing towards longer-tenor multilateral financing with maturities of 20 to 25 years.

He said the current account had turned around from a deficit of $17.5 billion, or 4.7% of GDP, in FY22 to a deficit of $3.3 billion in FY23 and $2.1 billion in FY24, before posting a surplus of $2.1 billion, or 0.5% of GDP, in FY25.

The current account remained in surplus during 11MFY26, with the SBP projecting the full-year balance within 0% to 1% of GDP.

The governor said Roshan Digital Account inflows had also improved, averaging around $300 million per month after recent changes to the scheme’s operating framework.


On inflation, Ahmad said average FY26 inflation stood at around 7.04%, close to the SBP’s medium-term target range of 5% to 7%.

However, inflation rose to 11.1% year-on-year in June 2026 after the recent increase in petroleum product prices.

Ahmad said export earnings are projected to increase in FY27, reversing the decline recorded in FY26.

Pakistan’s trade deficit widened to $39.47 billion in FY26, up 21.57% from the previous fiscal year, according to Pakistan Bureau of Statistics data released on Thursday.
Click to expand...

Pakistan economy, SBP chairmain now brag about $44bn remmitance and doesnt even mention exports.
 
State Bank of Pakistan (SBP) Governor Jameel Ahmad on Friday said the preliminary numbers suggested that the inflows of workers’ remittances would end up above $41.5 billion in FY26, higher than last year, despite the recent geopolitical crisis in the region.

Cumulatively, workers’ remittances increased by 9.2% to $38.1 billion during Jul-May FY26, compared to $34.9 billion received during the same period last year.

“We have projected workers’ remittances to clock in at $44 billion in FY27,” the central bank chief said.
 
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