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Pakistan Remittances Reach $3.29 Billion in February as UAE Edges Past Saudi

The UAE nudged into the top spot for February, underscoring Pakistan’s heavy Gulf dependence for remittances with potential exposure to regional tensions.

Overview

  • State Bank of Pakistan data show February inflows at $3.29 billion, up 5.2% year on year but about 5% lower than January’s $3.46 billion.
  • Cumulative workers’ remittances for July–February FY26 totaled $26.5 billion, a 10.5% increase from the same period a year earlier.
  • UAE-sourced transfers led February with $696.2 million, slightly ahead of Saudi Arabia at $685.5 million, followed by the United Kingdom at $532.0 million and the United States at $319.5 million.
  • Within the UAE, Dubai accounted for $566.2 million and Abu Dhabi $101.9 million, reflecting strong labor demand tied to construction and business activity, according to exchange-company officials.
  • Analysts say remittances remain a crucial support for Pakistan’s external account, with a seasonal lift likely around Ramadan and Eid, while warning that the Gulf-centric flow mix leaves inflows vulnerable if regional tensions persist; SBP’s full‑year target of roughly $42 billion is viewed as reachable by some market researchers.