Remittances climb to record $4.25bn in May

ISLAMABAD: Workers’ remittances rose to a record monthly level of $4.251 billion in May 2026, according to provisional figures released by the State Bank of Pakistan (SBP), with the increase linked to Eid-related inflows and continued support from overseas Pakistanis.

The central bank’s data showed remittances were up 15.4% from May 2025. For the first 11 months of FY26, spanning July to May, inflows reached $38.11 billion, compared with $34.89 billion in the same period of FY25, reflecting a 9.2% increase. The average monthly remittance inflow in FY26 has now reached about $3.19 billion.

Nasheed Malik, head of research at Growth Securities, said the May figure was the highest monthly remittance total on record and attributed it to a rise in migrant workers as well as Eid-related inflows. He also noted that, in the first 11 months of FY26, remittances from the United States were the only major corridor to post a year-on-year decline, falling 3%.

According to the SBP, Saudi Arabia remained the biggest source of remittances in May with $1.025 billion, followed by the United Arab Emirates at $1.006 billion, the United Kingdom at $645.5 million and the United States at $349.8 million. Together, these four countries made up a large portion of the month’s total inflows.

Gulf inflows remain strong

The UAE was among the strongest-performing corridors, recording 12.7% year-on-year growth in May and 45.7% growth during July-May. Within the UAE, Dubai accounted for $828.1 million and posted 49.7% year-on-year growth, while Abu Dhabi and other emirates also contributed to the increase. Saudi Arabia registered a 5.1% annual rise in May and retained its position as the largest individual source of remittances.

KTrade Research said remittances rose by more than 15% year-on-year and over 20% month-on-month in May to reach the historic high of $4.25 billion, also attributing the jump to Eid-related inflows. Its analysis said growth was broad-based but led in particular by the Gulf region. According to KTrade, inflows from Saudi Arabia increased by more than 12% year-on-year and over 22% month-on-month, while remittances from the UAE rose by more than 33% year-on-year and over 37% month-on-month.

KTrade added that remittances from the UK and the US also posted gains, with the UK rising by more than 10% year-on-year and over 15% month-on-month, and the US up by more than 11% year-on-year and over 10% month-on-month. Other notable increases were reported from Australia, where inflows grew 41.5% year-on-year in May, and from several European Union countries, which collectively recorded 17.3% annual growth, including Italy, Spain, Ireland and the Netherlands. Among Gulf Cooperation Council countries, Qatar, Kuwait and Bahrain also supported the overall rise, while smaller corridors such as Malaysia and South Africa recorded modest declines.

Currency and market indicators

On the currency side, KTrade said the rupee appreciated 0.1% month-on-month to close at Rs278.4 against the US dollar in May 2026. The rupee traded at Rs278.36 per dollar, showing a gain of Re0.01, while it closed at Rs278.37 on Tuesday. Analysts linked the relative stability in the local currency partly to stronger remittance inflows and to administrative measures aimed at managing the gap between the dollar telegraphic transfer rate and the interbank rate.

The sustained inflow of remittances has helped reduce pressure on foreign exchange reserves. The trend through most months of FY26 has remained positive on a year-on-year basis, supporting the external sector as the country manages import financing, debt servicing and reserve-building needs. The SBP said the remittance data includes conversions from Roshan Digital Accounts and is compiled on the basis of the original country of the remitter.

Separately, gold prices in Pakistan fell on Wednesday in line with losses in international markets. The price of gold per tola dropped by Rs12,627 to Rs442,436, while the rate for 10 grams fell by Rs11,364 to Rs378,170. In the global market, gold was down $126 to $4,200 per ounce. Silver prices also declined by Rs385 to Rs6,929 per tola.