Remittances from Overseas Pakistanis - Updates

[ghazi52]

Beyond economics, the social costs of migration-driven remittances are profound yet frequently overlooked.

Prolonged overseas employment fractures family structures, inducing emotional stress and altering household dynamics. Increased psychological pressures on left-behind spouses and children, alongside shifting gender roles for which some communities are often unprepared, create multiple social issues.

These gradual social adjustments in the era of constantly growing remittances carry significant long-term implications for societal cohesion and collective well-being.

In Pakistan’s case, this poses greater risks because remittances’ growth is more due to the departure of a higher number of Pakistanis abroad and not due to an increase in per-capita remittances.

Sustained remittance flows also risk fostering a culture of dependency. In communities where migration becomes the paramount aspiration, youth may prioritise emigration over local skills development, entrepreneurship, or participation in the domestic labour market.

This gradually weakens local economic ecosystems and reinforces the very conditions that drive outward migration.

 

[ghazi52]

Furthermore, remittances tend to be geographically and socially concentrated, exacerbating inequalities between recipient and non-recipient communities, thereby creating new socio-economic fissures.

The political implications, though subtler, are equally significant. When private remittances enable households to access essential services like health and education, public pressure on the state to deliver these services diminishes.

This erosion of the social contract weakens demands for governmental accountability, institutional reform, and performance. Remittances effectively create a parallel welfare system that mitigates immediate hardship but also allows systemic governance failures to persist unchallenged.

 

[ghazi52]

At a macro-political level, the stabilising function of remittances can cultivate policy complacency. Since inflows steady forex reserves and finance imports, successive governments postpone arduous reforms essential for boosting export competitiveness, industrial upgrading, and job creation. This trade-off — prioritising short-term stability over long-term restructuring — has fundamentally constrained Pakistan’s development trajectory.

None of this negates the immense value of remittances. They embody the sacrifices of millions of overseas Pakistanis and remain a crucial buffer for both the national treasury and household resilience. In FY25, record inflows were instrumental in alleviating external pressures at a critical juncture.

Nevertheless, an economy that leans more on its diaspora than on its domestic productive capacity faces severe long-term vulnerabilities. Remittances must function as a bridge toward a productivity-driven economy — not as a crutch.

Without deliberate policies to channel these flows into productive investment, revive exports, and rebuild the state-citizen compact, Pakistan risks exchanging temporary relief for permanent structural fragility.

 

[ghazi52]

Remittances to cross $41bn

The finance minister said Pakistan’s remittances were expected to cross $41 billion this year, up from $38 billion in the previous fiscal year, providing crucial support to foreign exchange inflows. He said reforms in tax administration and the energy sector were key parts of the government’s stabilisation agenda.

 

[Watandar]

Remittances to cross $41bn

The finance minister said Pakistan’s remittances were expected to cross $41 billion this year, up from $38 billion in the previous fiscal year, providing crucial support to foreign exchange inflows. He said reforms in tax administration and the energy sector were key parts of the government’s stabilisation agenda.

$3 billion dollar increase in remittances in one year ? How is that even possible ? Pakistan's largest manpower export is labor to Middle East where they are paid a pittance.

Better educated and earning Pakistanis are in North America ,Europe and Southeast Asia but in small numbers. Where is $41 billion coming from ??

 

[ghazi52]

 

[Aziqbal]

does this put Pakistan 4th behind India, Mexico and China ?

 

[ghazi52]

Pakistanis' exodus termed boon for economy​

Ministry confirms 762,000 Pakistanis migrated abroad in 2025

Shahbaz Rana
January 28, 2026

Muhammad Riaz was attempting to travel abroad. PHOTO: FILE

ISLAMABAD: The Finance Ministry said on Tuesday that over 762,000 Pakistanis left the country in last one year, becoming part of the pool that is helping the nation to economically stay afloat, amid steep reduction in foreign direct investment and exports.

In calendar year 2025, the Bureau of Emigration & Overseas Employment registered 762,499 workers who left Pakistan, according to the monthly outlook report by the Ministry of Finance. There was an increase of over 5% or nearly 37,000 more souls who left the motherland in search of better job opportunities.

The Finance Ministry said that in December 2025 alone the Bureau of Emigration & Overseas Employment registered 76,207 workers who left Pakistan, marking 18.7% surge over an annual basis.

Out of the total, 530,000 people went to Saudi Arabia in search for good future. From unskilled to highly qualified and highly skilled people are leaving Pakistan amid prolonged period of low economic growth and heightened period of political instability.

 

[ghazi52]

The money sent by overseas Pakistanis is now the single largest source of non-debt creating foreign inflows that are keeping the country afloat. During the first half of this fiscal year, the Pakistani workers sent $19.7 billion in remittances, up by 11%.

The government is getting around $40 billion annually from these workers without any support to them. Compared to this the entire state machinery is focused on enhancing exports and foreign direct investment but is failing.

The foreign remittances were 23 times more than the $808 million foreign direct investment that Pakistan received during the first half of this fiscal year. It was also $4.2 billion higher than the $15.5 billion worth of exports during this period.

Despite making efforts at multiple fronts, the foreign direct investment decreased nearly 44% during the first half of this fiscal year. The Finance Ministry said that the foreign direct investment dipped from $1.4 billion to mere $808 million during July-December period of this fiscal year.

Pakistan's inconsistent economic policies, high taxes and energy prices and unrealistically higher interest rates are keeping the foreign investors away. The authorities are still struggling to resolve inter-provincial issues that are also hampering foreign investment.

 

[ghazi52]

The Finance Ministry report stated that the current account is projected to remain in a deficit in January but this would be backed by higher foreign remittances.

The "robust remittance inflows and steady performance in information technology and services exports are likely to cushion external pressures", said the ministry. The improved fiscal management is also expected to continue supporting the macroeconomic stability, said the ministry.

 

[ghazi52]

SBP revises up projection for workers’ remittances to $42bn in FY26​

• Central bank chief expects higher remittances during two Eids falling in FY26

Salman Siddiqui

State Bank of Pakistan (SBP) Governor Jameel Ahmad has revised up its projection for the cumulative inflows of workers’ remittances to $42 billion in the ongoing fiscal year 2025-26, expecting the inflows would soar to new highs ahead the two upcoming Eids falling in March-June 2026.

Briefing media at the central bank’s head office in Karachi on Friday, Ahmad anticipated the inflows to reach $42 billion in the year under review against the central bank January 2026’s projection of around $41 billion in FY26, as overseas Pakistanis send significant amounts of remittances to their family and friends in the months falling around Eid-Ul-Fitr and Eid-Ul-Adha in the country.

“We can expect higher remittances as two Eids are falling head [in FY26],” he said.

Historical trends suggest the inflows peak around the Eid months. It hit an all-time high at $4.05 billion in March 2025 - the month when Eid-Ul-Fitr fell around last year, according to the central bank’s data.

 

[ghazi52]

The remittances surged 26% to record high $38.3 billion in FY25 compared to $30.3 billion in FY24.

Ahamd said the work on integration of Pakistan’s digital payment infrastructure with the Arab world’s Buna platform - a cross-border payment system in multiple currencies - had almost been completed.

“This will soon be launched, enabling Pakistanis living in the Arab world countries to send workers’ remittances swiftly to Pakistan and contribute towards enhanced inflows ahead.”

“Pakistan is also in talks with Saudi Arabia and UAE to integrate its digital payment system with the two GCC countries,” he added.

UAE and Saudi Arabia are the two countries where more than 70% Pakistani expatriates live and send the highest volume of remittances to Pakistan compared to from other parts of the world. The integration is expected to ensure speedy and improved inflows of workers remittances from there to Pakistan, it was learnt.

 

[Meengla]

Brain Drain: Idealism vs. Realism:

While many view the emigration of both skilled and unskilled workers from Pakistan as a "Brain Drain," the unfortunate reality is that it is often the necessary utilization of an "unemployed brain" or this process utilizes human capital that would otherwise remain stagnant or unemployed. By exporting workers to other countries, these individuals can secure a better life . By working abroad, these individuals improve their standard of living and and support the national economy through remittances. In this sense, a domestic liability is converted into an international asset. It is an unfortunate situation, but a necessary economic reality.

I know it sounds ridiculous, for a country like Pakistan, to have exports, less than its remittances, but that’s the reality of our situation.

Good post.
When most poor countries are quite happy to send their all too abundant workers abroad, Pakistanis in the blogspace are perhaps uniquely crying over it.
Let's not do the 'brain drain' and let's see a Pakistan without the remittance?!! Oh yeah, the answers will be like 'We need to do reforms in Pakistan itself to stop the brain drain'. Who the hell is this 'we'?! Almost 80 years since Pakistan's formation, many govts--civilians and military--and yet Pakistan remains poor--as do many other nations of this world.
BTW, the money sent by the expats are not just used in buying groceries-- Pakistan has a large construction industry, as one example, and with that many connected businesses in the housing sector alone.

 

[PK781]

the govt is extremely stupid for depending on these remittances

there is hyperinflation everywhere and its getting more and more difficult for many to keep sending money to their loved ones in Pak, the foreign countries realize this and are coming up with more ways to tax the incomes,,,,,,,thereby decreasing amounts sent and slowly they may even dry up if the few global elites control everything when its all "digital".
Pakistan will see all these remittances disappear when people and their cards are controlled by the central bank digital currencies (modern SLAVERY) where they can just shut the card/ability

while the elites continue their corruptions, time is slipping away

 

[hydrabadi_arab]

SBP revises up projection for workers’ remittances to $42bn in FY26​

• Central bank chief expects higher remittances during two Eids falling in FY26

Salman Siddiqui

State Bank of Pakistan (SBP) Governor Jameel Ahmad has revised up its projection for the cumulative inflows of workers’ remittances to $42 billion in the ongoing fiscal year 2025-26, expecting the inflows would soar to new highs ahead the two upcoming Eids falling in March-June 2026.

Briefing media at the central bank’s head office in Karachi on Friday, Ahmad anticipated the inflows to reach $42 billion in the year under review against the central bank January 2026’s projection of around $41 billion in FY26, as overseas Pakistanis send significant amounts of remittances to their family and friends in the months falling around Eid-Ul-Fitr and Eid-Ul-Adha in the country.

“We can expect higher remittances as two Eids are falling head [in FY26],” he said.

Historical trends suggest the inflows peak around the Eid months. It hit an all-time high at $4.05 billion in March 2025 - the month when Eid-Ul-Fitr fell around last year, according to the central bank’s data.

Looks like remittance will finally beat exports, a shame really.

$42bn remittance. Exports likely $39-40bn.