Record Remittance Inflows Expected in FY27
Pakistan’s central bank expects workers' remittances to climb to a record $44 billion in Fiscal Year 2026-27, State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Friday. The projection would mark a significant increase from the $38.1 billion recorded in the first 11 months of the outgoing fiscal year, which represented a 9.2 percent year-on-year growth.
May 2025 Sees Highest Monthly Inflow
In May 2025, remittances reached an all-time monthly high of $4.25 billion, with Saudi Arabia and the United Arab Emirates contributing approximately $2 billion combined. For the full Fiscal Year 2025-26 ending June 2026, remittances are expected to exceed $41.5 billion once final figures are compiled.
“We are expecting next year’s remittances to be at $44 billion, for fiscal year 2027,” Ahmad told Arab News on the sidelines of a press conference in Karachi.
Reserves to Surpass $20.2 Billion by December 2026
Ahmad also provided an optimistic outlook for foreign exchange reserves, stating: “By the end of December 2026, our foreign exchange reserves will be more than $20.2 billion.” This surpasses the earlier target of $17.5 billion by June 2026, which Ahmad had announced at the IMF-World Bank meetings in Washington in October 2025.
The SBP has purchased $20 billion from the interbank market over the past three years to rebuild reserves and strengthen the economy’s capacity to absorb external shocks. In June 2026, reserves fell by $1.3 billion in one week due to external debt repayments but recovered on multilateral inflows, SBP data showed.
Trade Deficit and Inflation Concerns
The rising trade deficit remains a “big concern” for the government, according to Ahmad, who said efforts are underway to boost exports. He noted that economic growth of 3.7 percent was “perhaps lower than our expectations” but could be revised upward once final estimates for June are available.
June inflation stood at 11.1 percent, but the average Consumer Price Index (CPI) for FY26 is expected to remain within the target range of 5-7 percent. “Due to the Middle East situation our inflation outlook deteriorated,” Ahmad said, adding that “in coming months inflation will see improvement.”
Current Account Surplus Maintained
The current account remained in surplus during 11 months of the outgoing fiscal year, with the SBP projecting the full-year balance to stay within 0-1 percent of GDP. “Overall the situation of our external account has improved due to this balanced current account position (in FY26),” Ahmad added.
