Remittances from Overseas Pakistanis - Updates

[bafxet]

agree the private sector usually takes charge and invests and grows business, provides opportunities for labor/skilled/unskilled manpower to be utilized.

However, for investment and business to flourish, the environment needs less rep tape and less punitive measures and other briberies to open and operate. If the cost of doing business is not worth it, then nobody will bother. The guy with money will flee elsewhere and setup shop where its economical, cheaper and where they can make profits. See how much of our industry has shifted to other places like Dhaka, or to China, or elsewhere.

Corruption and mismanagement and brutal thuggery by establishment(military) is at the core of our issues. We have the same old families, feudals ruling the country since forever. No change at all. This is the problem. No accountability or reforms to curb that.
the security and food bill of employing soooo many just for "protocols" and "security" of protecting useless bureaucrats, judges, politicians, etc are in billions these days, plus the costs of their high-value maintainence of the vehicles and the gas/petrol/diesel bills the govt has to foot. Eliminate that FIRST.

nobody will bother unless the system is changed tota

agree the private sector usually takes charge and invests and grows business, provides opportunities for labor/skilled/unskilled manpower to be utilized.

However, for investment and business to flourish, the environment needs less rep tape and less punitive measures and other briberies to open and operate. If the cost of doing business is not worth it, then nobody will bother. The guy with money will flee elsewhere and setup shop where its economical, cheaper and where they can make profits. See how much of our industry has shifted to other places like Dhaka, or to China, or elsewhere.

Corruption and mismanagement and brutal thuggery by establishment(military) is at the core of our issues. We have the same old families, feudals ruling the country since forever. No change at all. This is the problem. No accountability or reforms to curb that.
the security and food bill of employing soooo many just for "protocols" and "security" of protecting useless bureaucrats, judges, politicians, etc are in billions these days, plus the costs of their high-value maintainence of the vehicles and the gas/petrol/diesel bills the govt has to foot. Eliminate that FIRST.

nobody will bother unless the system is changed totally

Are our policy makers both burucracy and political naive? Can't look around and see what the reality is. Don't go too far our neighbors next door India is attracting investment. Vietnam once a war torn, China.

agree the private sector usually takes charge and invests and grows business, provides opportunities for labor/skilled/unskilled manpower to be utilized.

However, for investment and business to flourish, the environment needs less rep tape and less punitive measures and other briberies to open and operate. If the cost of doing business is not worth it, then nobody will bother. The guy with money will flee elsewhere and setup shop where its economical, cheaper and where they can make profits. See how much of our industry has shifted to other places like Dhaka, or to China, or elsewhere.

Corruption and mismanagement and brutal thuggery by establishment(military) is at the core of our issues. We have the same old families, feudals ruling the country since forever. No change at all. This is the problem. No accountability or reforms to curb that.
the security and food bill of employing soooo many just for "protocols" and "security" of protecting useless bureaucrats, judges, politicians, etc are in billions these days, plus the costs of their high-value maintainence of the vehicles and the gas/petrol/diesel bills the govt has to foot. Eliminate that FIRST.

nobody will bother unless the system is changed totally

Are our policy makers both politicians and burucracy naive. Can't they look around and see India, Vietnam China all have raced away economically. But this wretched country is struggling. No respect no self esteemed left. Imf, Saudi Arabia China they are keeping us afloat. And mind you that in today's world there is no free cup of tea.

 

[bafxet]

it is actually critically alarming......the day the mideast starts telling our diaspora they're no longer needed, those remittances will dry up.
Pakistanis from Europe, North America etc cannot match or send that much as most of their incomes stays where they live........unlike the gulf workers who send most of it home(being permanent "temporary" status which means they cannot stay there permanently).

Of course. The country destiny is in the hands of Inept and dysfunctional burucracy and politicians.

 

[hydrabadi_arab]

This is actually terrible news. Exports means jobs in Pakistan whereas remittances mean jobs abroad. This points to a stagnant economy, forcing people to go abroad for work.

The terrible news isn't that remittance have crossed $40bn. Thats good news. Exports of goods being stuck at $30bn for a decade is indeed terrible news.

Less remittances will not increase exports.

 

[bafxet]

The terrible news isn't that remittance have crossed $40bn. Thats good news. Exports of goods being stuck at $30bn for a decade is indeed terrible news.

Less remittances will not increase exports.

A country of 250 million putting up an export number of 30 billion what shame. We celebrate that the football used in FIFA world cup is made here in Pakistan. Damn are they nuts?. Can't the world make a simple football. The matter of pride was if we had made our mark in Sami Conductor or Data Center or AI.

 

[maxpane]

A country of 250 million putting up an export number of 30 billion what shame. We celebrate that the football used in FIFA world cup is made here in Pakistan. Damn are they nuts?. Can't the world make a simple football. The matter of pride was if we had made our mark in Sami Conductor or Data Center or AI.

out elite likes to invest in plots and thats bitter reality. pricing land and then bet on it to exort the oublic . easy money. they dnt want a good economy. They invest in
Land 2 rental power plants and love to import.

 

[bafxet]

out elite likes to invest in plots, and that's bitter reality. pricing land and then bet on it to exort the public . easy money. they dnt want a good economy. They invest in
Land 2 rental power plants and love to import.

This is not sustainable. Since we live in a neuclear, capable neighborhood therefore it is imperative that we should have one. But a country with a weak economy can flatten dispute of being a neuclear power. North Korea is a typical example.

 

[maxpane]

This is not sustainable. Since we live in a neuclear, capable neighborhood therefore it is imperative that we should have one. But a country with a weak economy can flatten dispute of being a neuclear power. North Korea is a typical example.

we all know its not sustainable but some people who power dnt care much . just imagine in 20 years our remittance inreace manyfold why? are people not hardworking ? ans is no in Pakistan people dnt have necessary support to do some basic things..
i belive our leite is one of the worst in the whole world. they dnt want to change the system which is bread and butter for them. there ia nexus between politics babus and military babus plus judiciary. they are realted to each other so they always protect each other one way or the other .

 

[hydrabadi_arab]

Pakistan FX increased to $24bn from $3bn in 2022. No increase in foreign debt since 2022. Remittances are helping and not being wasted like in 2010's.

 

[hydrabadi_arab]

Roshan Digital Account (RDA) net inflows surged to an all-time high of US$2.5bn in FY26, reflecting growing trust and participation from overseas Pakistanis. Notably, the RDA also recorded its highest-ever monthly net inflow of US$321mn in April 2026.




Remember now RDA accounts are open for all foreigners if I'm not wrong. Though govt need to better market so foreigners can invest through it.

 

[hydrabadi_arab]

Exchange firms sell $6bn to banks in FY26​

KARACHI: Exchange companies revealed on Saturday that they sold as much as $6 billion to banks during the just-concluded FY26.

Pakistan received a record $41.6bn in remittances in 2025-26, strengthening the economy by becoming a major source of foreign exchange.

“The inflows through the exchange companies were in the range of $5-$6bn during the FY26,” said Zafar Paracha, General Secretary, Exchange Companies Association of Pakistan. He said on average the exchange companies had been selling about $500 million per month.

However, the State Bank has closed down at least five exchange companies in FY26 for violations of its rules and regulations. One of the exchange companies recently surrendered its licence to do business.


“The exchange companies are over-regulated by the State Bank, which made it difficult to carry on business and remain in profit.

This is the reason that more companies are mulling to close down their business,” said a currency dealer. He did not mention the names of the companies willing to surrender their licenses.

The State Bank has been encouraging banks to establish their own exchange companies for remittances and domestic trading. So far, 14 banks have opened their companies. While the country’s dependence on remittances has been increasing each year, with remittances exceeding export earnings, the SBP has recently withdrawn some incentives available to banks to attract remittances.

Experts said the amount of incentives, at Rs120bn, was so large that it attracted IMF attention, and the matter was influenced to stop this disbursement of prizes.

The government is making efforts to enhance remittances through labour exports abroad. Recently, the prime minister has asked foreign missions to find jobs for Pakistanis in their respective countries.


However, it was noted with surprise in business circles that the government talks about $60bn and $100bn in exports, but no solid effort has so far been made to give it practical shape.

“The exports depend on large domestic and foreign investments in the manufacturing sector, but the situation is different; neither domestic nor foreign investments improved in FY26,” said an exporter.

He stated that the business community has been advising the government from the outset that without investment in manufacturing, exports would remain well below the country’s potential.

Published in Dawn, July 12th, 2026

 

[hydrabadi_arab]

Exchange firms sell $6bn to banks in FY26​

KARACHI: Exchange companies revealed on Saturday that they sold as much as $6 billion to banks during the just-concluded FY26.

Pakistan received a record $41.6bn in remittances in 2025-26, strengthening the economy by becoming a major source of foreign exchange.

“The inflows through the exchange companies were in the range of $5-$6bn during the FY26,” said Zafar Paracha, General Secretary, Exchange Companies Association of Pakistan. He said on average the exchange companies had been selling about $500 million per month.

However, the State Bank has closed down at least five exchange companies in FY26 for violations of its rules and regulations. One of the exchange companies recently surrendered its licence to do business.


“The exchange companies are over-regulated by the State Bank, which made it difficult to carry on business and remain in profit.

This is the reason that more companies are mulling to close down their business,” said a currency dealer. He did not mention the names of the companies willing to surrender their licenses.

The State Bank has been encouraging banks to establish their own exchange companies for remittances and domestic trading. So far, 14 banks have opened their companies. While the country’s dependence on remittances has been increasing each year, with remittances exceeding export earnings, the SBP has recently withdrawn some incentives available to banks to attract remittances.

Experts said the amount of incentives, at Rs120bn, was so large that it attracted IMF attention, and the matter was influenced to stop this disbursement of prizes.

The government is making efforts to enhance remittances through labour exports abroad. Recently, the prime minister has asked foreign missions to find jobs for Pakistanis in their respective countries.


However, it was noted with surprise in business circles that the government talks about $60bn and $100bn in exports, but no solid effort has so far been made to give it practical shape.

“The exports depend on large domestic and foreign investments in the manufacturing sector, but the situation is different; neither domestic nor foreign investments improved in FY26,” said an exporter.

He stated that the business community has been advising the government from the outset that without investment in manufacturing, exports would remain well below the country’s potential.

Published in Dawn, July 12th, 2026

Pakistan losses up to $12bn/year to fraud. Need to work on that so every dollar enter economy.

Here is where that hidden money currently sits and how it would flow back into the economy:

1. Traditional Hundi & Hawala ($5 to $8 Billion)​

Historically, financial experts estimate that informal remittance networks account for roughly 20% to 25% of the size of the formal remittance market. If overseas workers are officially sending $41.6 billion (as noted in your article), an estimated $5 billion to $8 billion is still being routed through traditional, paper-based Hundi brokers to avoid taxes, scrutiny, or to get a slightly better "black market" exchange rate.

2. Digital Hundi & Crypto-Remittances ($2.1 to $2.5 Billion)​

Fraud has also evolved technologically. Recent 2024 and 2025 economic studies on Pakistan's "Invisible Billions" have tracked a surge in unregulated cryptocurrency P2P networks acting as "Digital Hundi." Migrants use dollars or Dirhams to buy stablecoins (like USDT) abroad, and brokers in Pakistan pay the families in physical Rupees. Researchers estimate this specific digital black market diverts up to $2.5 billion away from the official banking sector annually.

3. Ending Physical Smuggling and Hoarding ($2 to $3 Billion)​

Corrupt exchange companies have historically acted as collection points for physical dollars that are then smuggled out of the country (often across the border to Afghanistan or back to the UAE) or hoarded by local speculators hoping the Rupee will crash. Shutting down these loopholes forces billions of dollars sitting in private safes or being trafficked across borders back into the official interbank system.

The Macroeconomic Impact​

If this estimated $7 to $12+ billion were successfully forced into the official banking system, the economic impact would be immediate:

• Currency Stabilization: A massive influx of dollar liquidity would strengthen the Pakistani Rupee, reducing the cost of imported goods like oil, food, and machinery.
• Reduced IMF Dependence: An extra $10 billion a year in liquid reserves would drastically reduce Pakistan's need to negotiate crippling, high-interest bailout loans from the International Monetary Fund (IMF).
• Lower Inflation: A stronger, stabilized Rupee directly lowers imported inflation, which dictates the price of fuel and electricity for the average citizen.

 

[SoulSpokesman]

@PK781

.the day the mideast starts telling our diaspora they're no longer needed, those remittances will dry up.

And why would they say that? They need labour of good quality and at reasonable wage rates. Pakistanis provide that. Who would they replace Pakistanis by?

Regards

 

[Owaiz]

No increase in foreign debt since 2022

What nonsense. You think the recent disbursements from the IMF and funds kept by Saudi Arabia in SBP are not a part of foreign debt.

 

[Owaiz]

@PK781

.the day the mideast starts telling our diaspora they're no longer needed, those remittances will dry up.

And why would they say that? They need labour of good quality and at reasonable wage rates. Pakistanis provide that. Who would they replace Pakistanis by?

Regards

UAE is already weapinising Pakistan's dependence on remittances. For low skill jobs, Pakistani workers can easily be replaced by those from other South Asian countries, poorer SE Asian countries and poorer Arab and African countries. There are many low income countries whose workers would be happy to go to work in the Gulf.

 

[hydrabadi_arab]

UAE is already weapinising Pakistan's dependence on remittances. For low skill jobs, Pakistani workers can easily be replaced by those from other South Asian countries, poorer SE Asian countries and poorer Arab and African countries. There are many low income countries whose workers would be happy to go to work in the Gulf.

Its not one way street. Pakistan have trade deficit of $5bn with UAE. Along with the fact that Pakistanis are 2nd or 3rd biggest property investors in UAE.