KARACHI: Pakistan received $3.5 billion in foreign remittances in January 2026, the central bank said on Tuesday, with Saudi Arabia once again leading the inflows that Islamabad considers crucial to ensure economic stability. 

Foreign remittances are key for cash-strapped Pakistan as they increase foreign reserves, cushion the country’s current account and stabilize the national currency.

As per data released by the State Bank of Pakistan (SBP), foreign remittances increased 15.4% on a year-on-year basis in January 2026. 

“Workers’ remittances recorded an inflow of $3.5 billion during January 2026,” the SBP said in a statement. 

It added that cumulatively, with an inflow of $23.2 billion remittances increased by 11.3% during the July-January period of the current fiscal year. Last year, Pakistan reported receiving $20.9 billion during the same period.

Saudi Arabia remained the top source of foreign remittances in January with inflows recorded at $739.6 million, followed by the UAE with $694.2 million. The UK reported the third-highest inflows at $572.1 million while remittances from the USA totaled $294.7 million in January.

According to SBP data, remittances reached a record $38.3 billion in fiscal year 2024-25, up from about $30.3 billion the year before, reflecting strong labor migration to Gulf countries and improved formal banking channels. 
 
Millions of Pakistanis work abroad in Gulf countries, Europe and USA, sending money to their families in Pakistan to support them financially. Islamabad has attempted to take advantage of this development in recent years, encouraging the use of formal channels and cracking down on illegal money transfer systems such as hawala and hundi.