Overseas workers’ remittances to Pakistan rose to $3.59 billion in December 2025, posting solid growth on both a monthly and yearly basis, data released by the State Bank of Pakistan (SBP) showed on Friday.

The inflows were up 16.5% year-on-year from $3.1 billion in December 2024 and increased 13% compared with $3.2 billion recorded in November.

During the first half of fiscal year 2026 (1HFY26), total remittances stood at $19.7 billion, an 11% increase from $17.8 billion in the corresponding period of last year.

Analysts attributed the sustained momentum to structural and policy factors.

“Remittances growth momentum is continuing on the back of higher manpower exports in previous years, lower differential in formal and informal exchange market and continuation of remittances incentive package,” said Topline Securities, in a note.

The brokerage maintained its full-year remittances projection at $41 billion for FY26, representing a 7.5% increase from $38 billion in FY25.

Remittances remain a key pillar of Pakistan’s external account, providing foreign exchange support, boosting domestic consumption, and supplementing the incomes of millions of households.

The central bank and government have been promoting the use of formal channels through incentives and regulatory reforms to sustain inflows.

Back in August, SBP noted that since 2009, the Pakistan Remittance Initiative (PRI) has been working to enhance home remittances through formal channels in Pakistan. As a result of active engagements with financial institutions (FIs), the number of FIs on the PRI network has increased from around 25 in 2009 to more than 50 in 2024. The FIs include conventional banks, Islamic banks, microfinance banks, and Exchange Companies (ECs).

Further, Electronic Money Institutions (EMIs) are also allowed to receive home remittances through banks. The number of international entities has increased from around 45 in 2009 to around 400 at present.

Country-wise breakdown

Saudi Arabia remained the largest source of remittances in December, with overseas Pakistanis sending $813 million. The figure was up 6% year-on-year and 8% higher than the $753 million recorded in November.

Inflows from the United Arab Emirates rose 15% year-on-year to $726 million in December 2025.

Remittances from the United Kingdom amounted to $560 million, up 16% from November and 28% higher than a year earlier.

Overseas Pakistanis in the United States sent $302 million during the month, down 1% year-on-year but 9% higher on a monthly basis.

Meanwhile, inflows from European Union countries surged to $499 million, marking a sharp 39% increase compared with December last year.