Remittance Trends in Pakistan

Pakistan received $3.3 billion in foreign remittances in February 2026, marking a 5.2 percent increase on a year-on-year basis. This growth is part of a broader trend, with cumulative workers’ remittances rising by 10.5 percent during the first eight months of the fiscal year 2026 compared to the same period last year.

The United Arab Emirates (UAE) was the top source of these remittances, contributing $696.2 million in February alone. Following closely, Saudi Arabia provided $685.5 million, while the United Kingdom and the United States contributed $532 million and $319.5 million, respectively. These figures underscore the critical role that expatriates play in supporting Pakistan’s economy.

Context of Remittance Flows

Labour migration has long been a key income source for millions of families in Bangladesh, with remittances serving as the country’s second-largest growth driver after exports. In 2025, Bangladesh received a record $32.8 billion in remittances, with nearly 47 percent of this amount coming from Middle Eastern countries. This trend highlights the importance of the Gulf region as a primary destination for Bangladeshi workers.

However, the ongoing military escalation in the region is disrupting global transport routes and economic activity, raising concerns about the stability of these remittance flows. The conflict has already led to the cancellation of 335 flights connecting Bangladesh to Gulf countries, leaving many Bangladeshi workers on leave uncertain about their return to jobs.

Expert Opinions on Future Trends

Experts are closely monitoring the situation, with some expressing cautious optimism. Abdul Hai Sarker noted, “If expatriates in the Middle East can continue working, the remittance flow will remain stable.” However, others like Asif Munier emphasize that the main concern is not just the ability to send money home, but whether workers will continue to earn. Selim Raihan added, “If economic activities slow down, Bangladeshi workers will face job or income losses.”

Mohammad Fakhrul Islam pointed out the direct correlation between company operations and wage payments, stating, “If companies do not operate, they often do not pay wages. Without income, workers cannot send remittances to Bangladesh.” This interdependence highlights the fragility of the remittance system amid geopolitical tensions.

Looking Ahead

Details remain unconfirmed regarding the long-term impact of the ongoing conflict on remittance flows. Observers are particularly concerned about how many workers are currently unable to return to their jobs due to flight cancellations. As the situation evolves, the resilience of remittance flows will be tested, with significant implications for both Pakistan and Bangladesh’s economies.