KARACHI: Remittances from overseas Pakistanis grew by 15.4 per cent in January, recording the second-highest collection this fiscal year.

Statistics released by the State Bank of Pakistan (SBP) on Tuesday show that the country received $3.46 billion in remittances in January. December 2025 saw the highest inflow of $3.59bn.

The country received a total of $23.2 billion during the July-January period of FY26, up 11.3pc from the previous year. Remittances jumped by $7.36bn from $15.83 in 7MFY24.

However, this growth has also made the country overly reliant on overseas Pakistanis, sparking concerns among economists.

Inflows jump 15.4pc in January, second-highest this fiscal year

They argue that any change in the geopolitical situation, especially in the Middle East, could diminish the demand for overseas workers. Hence, the government should take steps to increase export volumes, they suggest.

They were particularly worried about the state of the external account since exports have shown negligible growth over the last several years.

The SBP recently slashed the export refinancing rate to incentivise exporters.

Forex reserves

The bi-annual monetary policy report, issued on Monday, estimates that the SBP’s foreign exchange reserves would be around $18bn in FY26. Some currency experts believe the target would be achieved thanks to higher remittances.

The SBP has been buying dollars from the inter-bank currency market to improve its reserves and keep paying foreign debts. Another factor worrying the money market is that Pakistan has to pay $2bn to the UAE in the next few weeks. Prospects for rescheduling look slim, according to sources.

The finance minister said recently there was no external financing gap for debt servicing. The government had projected inflows through remittances at $40bn for FY26, compared to $38bn in FY25.

The country had already received more than $2bn in the first seven months of FY26, meaning total inflows would exceed the target.

Saudi Arabia was the biggest source of remittances amounting $5.45bn in 7MFY26.

The highest growth of 25pc was noted in inflows from the EU countries. Receipts totalled $3.1bn. Inflows from the UAE and the UK saw a growth of 11.7pc and 11.6pc, respectively, with inflows of $4.78bn and $3.479bn.

Published in Dawn, February 11th, 2026