War Stops Overseas Pakistanis From Sending More Money Home As Remittances Fall

Pakistan experienced a 5% year-on-year decrease in overseas worker remittances, totaling $3.8 billion in March 2026, compared to $4 billion in March 2025, attributed to a "regional situation" likely referring to war. Despite this, month-on-month inflows surged by 17% from February 2026, and overall remittances for the first nine months of FY26 grew 8% to $30.3 billion, supported by strong contributions from Saudi Arabia, the UK, and UAE. Major sources like Saudi Arabia, UAE, UK, and US all saw year-on-year declines in March 2026. However, 9MFY26 growth was boosted by factors such as higher manpower exports and an incentive package. The State Bank of Pakistan data indicates that while some regions posted strong 9MFY26 growth, the ongoing regional conflict is projected to weigh on future remittance inflows.