Overseas Pakistanis send $41.6bn in FY26 as SBP ends incentive schemes

Overseas workers’ remittances to Pakistan increased by 9% to $41.6 billion during Jul-June FY26, up from $38.3 billion in the previous fiscal year. During June, remittances stood at $3.475 billion, according to data from the State Bank of Pakistan (SBP) released on Thursday. In terms of growth, remittances declined by 18% on a month-on-month basis but were up 2% on a year-on-year basis. Remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity, and supplementing the disposable incomes of remittance-dependent households. Earlier, SBP Governor Jameel Ahmad said the preliminary numbers suggested that the inflows of workers’ remittances would end up above $41.5 billion in FY2 6, higher than last year, despite the recent geopolitical crisis in the region. Last week, SBP discontinued a government-backed incentive scheme that reimbursed banks for telegraphic transfer charges on workers’ remittances . Similarly, SBP also decided to discontinue the Sohni Dharti Remittance Program (SDRP) , ending the incentive scheme that rewarded overseas Pakistanis for sending remittances through formal banking channels. Breakdown of remittances Overseas Pakistanis in Saudi Arabia remitted the largest amount in June 2026, sending $830 million. The amount was up 1% compared to the $823 million sent by the expatriates in the same month last year. However, the amount was down by 19% compared to $1,025 million recorded in May 2026. Inflows from the United Arab Emirates rose by 10% on a yearly basis, from $717 million in June 2025 to $792 million in June 2026. They decreased significantly by 21% on a monthly basis. Remittances from the UK amounted to $515 million during June 2026, down by 20% compared to $645 million in May. Overseas Pakistanis in the US sent $297 million in June, a monthly decrease of 15% from $349 million during May. Meanwhile, remittances from European Union (EU) countries clocked in at $415 million in June, recording a decrease of 11% on a monthly basis from $466 million in May.