Pakistan Receives $3.892 Billion in October Remittances as Annual Forecast Rises to $45 Billion

Overseas transfers add $1.81 billion to Pakistan's finances

Pakistan received $3.892 billion from workers abroad in October 2026, taking remittances for the first four months of its financial year to $14.77 billion. The July to October total was about $1.81 billion higher than the $12.96 billion received during the same period a year earlier, according to figures attributed to the State Bank of Pakistan (SBP).

October transfers increased 13.8% from $3.420 billion in October 2025 and 8.5% from $3.588 billion in September 2026. Saudi Arabia supplied the largest amount, $981.6 million, followed by the United Arab Emirates with $815.93 million. Together, those two countries accounted for about 46% of the month's inflows.

The growth has prompted the central bank to raise its forecast for remittances during the financial year ending in June 2027 to $45 billion, from $44 billion. For families receiving the money, the transfers supplement household income. For Pakistan, they provide foreign currency needed to make payments abroad.

Khurram Schehzad, adviser to the finance minister, described the economic contribution in a statement on X:

These sustained inflows are strengthening Pakistan's foreign exchange position, supporting households and reinforcing external-account stability,

Remittances are money people working abroad send home, usually to relatives. Their importance reaches beyond the receiving family because Pakistan needs foreign currency to pay for imports and meet overseas obligations. October's increase added $304 million compared with September and $472 million compared with October last year.

How the increase developed

Pakistan's figures show growth across both the latest month and the financial year so far. The financial year, labelled FY2027 or FY27, runs from July 2026 through June 2027. July to October therefore covers its first four months.

The main dates and comparisons are:

• July to October 2025: Pakistan received $12.96 billion in remittances.
• September 2026: Monthly inflows reached $3.588 billion.
• October 2026: Inflows rose to $3.892 billion, taking the total since July to $14.77 billion.
• October 2026: The SBP raised its forecast for the financial year to $45 billion from $44 billion.
• June 2027: The financial year covered by that forecast ends.

The four months produced an average of about $3.69 billion a month. October's $3.892 billion was above that average, while the accumulated total was 14% higher than a year earlier. The increase therefore extends beyond the latest monthly result.

Saudi Arabia and the UAE supply nearly half

Saudi Arabia contributed $3.668 billion during July to October, up from $3.149 billion a year earlier. The UAE supplied $3.052 billion, compared with $2.689 billion. Together, their $6.72 billion represented about 45.5% of Pakistan's $14.77 billion total.

Saudi transfers increased by roughly $519 million over those four months, while UAE transfers rose by $363 million. Their combined increase of $882 million accounted for almost half of the approximately $1.81 billion rise in Pakistan's remittances.

October's detailed figures show Saudi transfers rising about 17% from $838 million a year earlier, while UAE transfers increased 16% from $703 million. Both also rose about 9% compared with September, when Saudi Arabia supplied $899 million and the UAE $749 million.

The initial figures attributed to Schehzad put Saudi annual growth at 25%, UK growth at 15%, EU growth at 12% and growth from other Gulf Cooperation Council countries at 13%; the detailed breakdown gives 17%, 19%, 9% and 7%, respectively. No explanation for those differences was given.

Dubai dominates the UAE total

Dubai accounted for $677.84 million of the UAE's $815.93 million in October transfers, or about 83%. Abu Dhabi contributed $112.21 million, Sharjah $13.57 million and other locations $12.31 million.

The concentration was similar across July to October. Dubai supplied $2.505 billion, roughly 82% of the UAE total, followed by Abu Dhabi with $443.23 million, Sharjah with $54.46 million and other locations with $48.48 million.

Other Gulf Cooperation Council countries contributed a combined $369.5 million in October. Oman led that group with $121.81 million, followed by Qatar with $112.54 million, Kuwait with $81.99 million and Bahrain with $53.16 million.

Those four countries supplied $1.374 billion during July to October. Adding their contribution to Saudi Arabia and the UAE brings the Gulf total to about $8.094 billion, nearly 55% of Pakistan's remittances over the period. That gives the region a central place in the finances of Pakistani households receiving money from abroad.

Britain and Europe broaden the inflows

The United Kingdom supplied $592.22 million in October, making it the third largest individual country of origin after Saudi Arabia and the UAE. Transfers were about 19% higher than the $499 million received in October 2025 and increased 15% compared with September.

UK transfers reached $2.227 billion during July to October, up from $1.867 billion a year earlier. The $360 million increase was almost as large as the UAE's $363 million increase over the same period.

European Union countries collectively contributed $460.86 million in October, about 9% more than a year earlier and 3% above September's $448 million. Italy supplied $136.3 million, followed by Spain with $83.77 million, Germany with $72.22 million, Greece with $50.26 million and France with $47.31 million.

EU transfers totalled $1.866 billion over the four months, up from $1.702 billion. Italy remained the largest contributor with $565.21 million, ahead of Spain at $339.89 million and Germany at $282.48 million. Greece and France contributed $206.93 million and $192.37 million, respectively.

Ireland, Belgium, Sweden, the Netherlands and Denmark also contributed to the EU total. Combined, the UK and EU supplied $4.093 billion during July to October, about 28% of Pakistan's remittances.

Contributions extend beyond the Gulf and Europe

The United States supplied $328.93 million in October, about 9% above the $301 million received a year earlier. Transfers during July to October reached $1.260 billion, up 14% from $1.107 billion.

Australia contributed $103.32 million in October and $386.93 million across the four months. Canada supplied $72.23 million during October and $268.93 million from July through October. Together, those two countries contributed $655.86 million during the period.

Smaller contributions came from countries across Africa, Asia and Europe. October transfers included $21.83 million from South Africa, $14.42 million from Malaysia, $13.29 million from Norway, $12.5 million from South Korea, $7.59 million from Japan and $5.17 million from Switzerland.

Over July to October, those six countries supplied a combined $290.87 million. Another $373.84 million was classified under other countries. Saudi Arabia and the UAE dominate the figures, but Pakistan also receives a substantial combined contribution from communities spread across many smaller destinations.

What the $45 billion forecast requires

SBP Governor Jameel Ahmed said remittances had remained resilient during the first quarter of FY2027. Speaking at a monetary policy press conference in October, he announced the higher annual projection:

Workers' remittances are expected to increase further, with Pakistan's inflows projected at $45 billion in the current fiscal year, up from the previous estimate of $44 billion,

The revision adds $1 billion, or about 2.3%, to the central bank's earlier forecast. Pakistan received roughly 32.8% of the new $45 billion target during the first four months of the year.

Reaching $45 billion would require another $30.23 billion between November 2026 and June 2027, an average of about $3.78 billion a month. That is above the $3.69 billion monthly average recorded from July to October, but below October's $3.892 billion.

The calculation shows the pace needed over the remaining eight months. The annual result will depend on how much overseas workers continue to send and how much of that money passes through the channels counted in Pakistan's remittance statistics.

Why households and foreign currency reserves benefit

Emre Akcakmak, head of frontier markets and portfolio adviser at East Capital, estimated that remittances over the preceding 12 months had reached $44 billion. He put their value at about 10% of Pakistan's gross domestic product, the value of goods and services produced in the economy, and said they covered 100% of its external deficits.

Akcakmak linked that contribution to an estimated Pakistani diaspora of 10 million people. His assessment describes the scale of the support: workers abroad provide a flow of foreign currency while helping families meet expenses at home.

Pakistan's external account records transactions with the rest of the world. When payments abroad exceed receipts from activities such as exports, remittances help fill the gap. They also give recipient households income that can be spent on their own needs.

Akcakmak placed the growth alongside Pakistan's recovery from its near default in 2023, when he said central bank reserves covered only 1.5 months of imports. Since then, he said, gross foreign exchange reserves had risen almost fivefold, inflation had fallen from 38% to single digits, most recently 9.6%, and equities had gained 318% in US dollar terms.

Foreign financing still forms part of Pakistan's arrangements. After the Saudi financing extension announced in early November, Islamabad retained access to a $3 billion facility that had reached maturity on October 31. Such financing carries repayment obligations, while remittances go to recipients as personal transfers.

Banks commit money to attract transfers

Pakistan Banks Association Chairman Zafar Masud said commercial banks would spend Rs. 100 billion from their own resources during FY2026 to 2027 to attract remittances and reduce transfer costs. He said banks had taken on the expense after the government ended subsidies for remittance transactions.

Masud said overseas Pakistanis pay between 18 and 20 riyals to send $200 to Pakistan. Banks were covering that cost from their profits, he said, to make transfers through banking channels cheaper. The charge is a direct expense for a worker sending money, separate from the amount intended for the recipient.

Banks have also allocated Rs. 16 billion to the Pasban Remittance Reward Scheme, which encourages transfers through formal channels and offers rewards for families in Pakistan. Pakistan Banks Association Chief Executive Officer Munir Kamal said the scheme aimed to help maintain annual remittances at around $41 billion.

Kamal's figure describes the scheme's stated aim, while the SBP's $45 billion figure is its forecast for the financial year. The scheme's first balloting is scheduled for January, with an audit planned to check the process. Lower fees and rewards give banks concrete ways to compete for transfers as Pakistan seeks to sustain the recent inflows.

Key Points

• Pakistan received $3.892 billion in remittances in October 2026, up 13.8% from a year earlier and 8.5% from September.
• July to October inflows reached $14.77 billion, about $1.81 billion more than the same period last year.
• Saudi Arabia and the UAE supplied $6.72 billion over four months, about 45.5% of the total.
• The SBP raised its annual forecast to $45 billion, requiring an average of about $3.78 billion a month over the remaining eight months.
• Banks plan to spend Rs. 100 billion to attract remittances and reduce transfer costs, alongside a Rs. 16 billion reward scheme allocation.