Pakistan received $3.8 billion in workers’ remittances in March 2026, recording a 5 percent decline compared with the same month last year, amid regional uncertainty that analysts say may be affecting overseas earnings and transfers.

According to data released by the State Bank of Pakistan (SBP), remittances totaled $3.831 billion during March, down from $4.054 billion in March 2025. However, inflows rebounded strongly on a month-on-month basis, rising 17 percent from $3.28 billion recorded in February 2026.

Despite the yearly dip, overall remittance performance remained positive during the ongoing fiscal year. In the first nine months of FY26, overseas Pakistanis sent home $30.3 billion, reflecting an 8 percent increase compared with the same period last year.

Saudi Arabia continued to be the largest source of remittances, contributing $918 million in March, though inflows from the kingdom declined 7 percent year-on-year. Transfers from the United Arab Emirates stood at $824 million, down 2 percent, while remittances from the United Kingdom fell 14 percent to $587 million.

Inflows from the United States also decreased, dropping 14 percent year-on-year to $359 million.

Market analysts attribute the broader growth trend in remittances to higher overseas employment in recent years, a reduced gap between formal and informal exchange markets, and government incentive schemes encouraging the use of official banking channels.

However, experts caution that ongoing geopolitical tensions in the region could create headwinds for remittance inflows in the coming months if economic uncertainty persists.

During July–March FY26, remittances from the UAE increased 10 percent year-on-year to $6.267 billion, while inflows from Saudi Arabia rose 3 percent to $7.086 billion. Transfers from the UK and the European Union also showed strong momentum, growing 8 percent and 20 percent, respectively.