Inflows hit $16b despite worker abuse
Maximum limit per person, per calendar year, to buy foreign currency, in the form of cash or outward remittances, will also be reduced from $100,000 to $50,000. photo: file
Despite what many overseas Pakistanis describe as humiliating behaviour and bureaucratic hurdles at home and abroad, at the hands of fellow countrymen in positions of authority, migrant workers have continued to support the struggling economy with unwavering commitment, sending $16.14 billion in 5MFY26, up 9% year-on-year and nearly $3.3 billion higher than Pakistan's dwindling exports of $12.8 billion recorded during the same five-month period of FY2026.
Workers' remittances, Pakistan's most vital foreign exchange lifeline, continued to show yearly growth during the first five months of FY26. According to central bank data compiled by Arif Habib Limited (AHL), remittance inflows climbed 9% year-on-year to $16.14 billion during July-November 2025 (5MFY26), compared to $14.77 billion during the same period last year. The upward trend reflects strengthening inflows from major destinations including Saudi Arabia, the UAE, the United Kingdom and the European Union. However, despite the encouraging yearly expansion, monthly flows slowed notably. In November 2025, Pakistan received $3.19 billion in remittances, up 9% from $2.92 billion in November 2024, but down 7% month-on-month from $3.42 billion recorded in October 2025.
Saudi Arabia remained the highest-contributing remittance source in November 2025, sending $753 million, a 3% yearly increase, though 10% lower than in October 2025. The UAE followed with $675 million, up 9% YoY but down 4% MoM. The UK also posted double-digit growth, with inflows rising 17% YoY to $481 million. EU inflows surged 29% YoY to $417mn, reflecting a growing migrant workforce in European markets, particularly Southern Europe. Collectively, Saudi Arabia and the UAE accounted for nearly 46% of Pakistan's total remittances during 5MFY26, a share that analysts expect to rise further.
Remittance contribution from KSA and UAE that averaged 44% during the last two fiscal years has now risen and during 5MFY26 constituted 46% of the total, said Waqas Ghani Kukaswadia, Head of Research at JS Global. "We believe these two countries could contribute more than half of Pakistan's total remittances going forward," he commented. He added that UAE inflows have regained pace, driven by improved labour absorption and policy relaxation. "Dubai in particular has seen a steady pick-up, reflecting better inflows due to eased emigration channels for Pakistanis," he noted. While headline numbers paint a positive picture, several structural challenges underscore Pakistan's increasing dependence on overseas labour income.
Nearly half of total remittances originate from just two economies, Saudi Arabia and UAE, making the inflow pipeline sensitive to Gulf labour policies, construction cycles, and oil-linked economic shifts. Any slowdown in the GCC job sector could create a sudden shock for Pakistan's external accounts. While the EU posted a strong 29% YoY rise and the UK 17%, both combined still trail GCC contributions significantly. Sustaining growth in European corridors would require strategic skill-export agreements, training programmes, and regulated migration channels.
Requesting anonymity, a worker who recently went to KSA shared the plight of his fellow workers, saying people dreaming of decent earnings abroad face routine humiliation at the hands of the Federal Investigation Agency (FIA) and other authorities at airports. Long queues at immigration counters turn into hours of verbal abuse, mockery, and unnecessary grilling. Young men, especially from Punjab and Khyber-Pakhtunkhwa, are singled out, called "beggar" or "illegal parchi wala," and asked degrading questions like "Kitnay paisay diye agent ko?" or "Wapas bhaag ke aao gay na?"
Passports are thrown on the floor, luggage is scattered publicly, and passengers are threatened with offloading over minor document issues. Women travelling alone are often subjected to intrusive personal questions and moral policing. Even genuine skilled workers, students, and visit-visa holders are harassed for "looking poor" or for having one-way tickets.
FIA officials openly demand bribes (Rs 5,00050,000) to clear passengers, turning departure into an extortion racket, complained another expatriate who plans to bring his brother abroad, as there are no opportunities in Pakistan.