The January inflows were slightly lower than the $3.59 billion recorded in December 2025, but significantly higher than $3.00 billion in January 2025, reflecting continued resilience in diaspora transfers amid global economic uncertainties and evolving migration trends.
Cumulatively, remittances during July-January FY26 reached $23.2 billion, compared with $20.85 billion in the same period last fiscal year, representing an increase of around 11.3%. The rise indicates steady momentum in overseas inflows that continue to support Pakistan’s external account stability.
In the last six months, remittances have averaged $3.331 billion, while over the last 12 months they have averaged $3.387 billion. Remittances in January 2026 were higher than both the six- and 12-month averages, noted Nasheed Malik, Head of Research at Growth Securities.
Country-wise data revealed a notable shift in remittance patterns, with traditional Gulf markets remaining dominant but Europe and advanced economies emerging as faster-growing sources. Saudi Arabia remained the single largest contributor with $7.39 billion in January, followed by the United Arab Emirates at $6.94 billion and the United Kingdom at $5.72 billion, according to the SBP Statistics Department.
However, remittances from the United States declined to $294.7 million, showing a year-on-year contraction and signalling possible moderation in transfers from one of Pakistan’s historically significant corridors amid tariff-related tensions.
In contrast, remittances from European Union countries surged, reaching $479.6 million in January, while cumulative EU inflows during FY26 rose by 24.6%. The increase reflects growing labour migration and improved remittance formalisation from the region.
Similarly, inflows from Australia and Canada recorded strong gains on a fiscal-year basis, increasing by 46.5% and 29.5%, respectively. This suggests rising skilled migration to Western economies and a gradual diversification of Pakistan’s remittance base beyond the Gulf Cooperation Council (GCC) countries.
Despite diversification, Gulf countries continued to dominate overall remittance flows, accounting for a major share of total inflows. Saudi Arabia, the UAE and other GCC countries collectively contributed the bulk of transfers, reflecting the continued importance of blue-collar labour migration and construction-sector employment in the region, although the share of educated Pakistani manpower is also on the rise.
Yet, the growth trajectory within the Gulf appeared uneven, with some corridors showing slower monthly momentum, potentially reflecting labour market adjustments.
Economists say sustained remittance inflows are playing a critical role in stabilising Pakistan’s external accounts by offsetting trade deficits and supporting foreign exchange reserves. The strong performance in FY26 so far provides relief to policymakers grappling with export volatility, debt-servicing pressures and ongoing IMF-driven macroeconomic reforms.
The rise in inflows from non-traditional markets also indicates structural changes in migration patterns, with skilled workers increasingly heading to Europe, Canada and Australia, while traditional labour markets in the Middle East continue to provide a steady base.
The SBP projects remittances for FY26 to reach $42 billion, with higher inflows expected in March and June 2026 due to the Eid impact, Malik stated. This would represent an increase of about 10% year-on-year in FY26 compared with $38.3 billion recorded in FY25.
“With the current growth rate of remittances at 11%, and higher inflows expected in the upcoming Eid seasons, we expect the SBP target to be achieved in FY26,” he said.
Meanwhile, gold prices witnessed an increase in the local market on Tuesday, as the price of 24-karat gold per tola rose by Rs1,500 to settle at Rs526,262, according to the All Pakistan Sarafa Gems and Jewellers Association.
Likewise, the price of 10 grams of 24-karat gold increased by Rs1,286 to Rs451,184, while the price of 10 grams of 22-karat gold went up by Rs1,179 to Rs413,600.
In the international market, the price of gold increased by $15 to $5,035 per ounce.
Meanwhile, silver prices remained unchanged in the local market, with the price of 24-karat silver per tola standing at Rs8,615, while the price of 10 grams of silver stayed stable at Rs7,385.
The price of silver in the international market also remained unchanged at $81.40 per ounce.
Furthermore, the rupee on Tuesday appreciated by three paisa against the US dollar in interbank trading and closed at Rs279.67, compared with the previous day’s closing at Rs279.70.