Pakistan received $34 billion in remittances, but dependence on Gulf countries became an alarm bell

State Bank data shows that Pakistan received $33.86 billion in remittances in the first 10 months of the fiscal year 2025-26, an 8.5 percent increase over the previous year. In April 2026 alone, $3.54 billion came in, an 11 percent increase on an annual basis. These figures look good to see, but the real concern is where this money is coming from.

More than half of the total remittances come from the Gulf countries alone. Saudi Arabia sends $7.93 billion and the UAE $7 billion, meaning that these two countries alone are sending more than $15 billion. The rest of the Gulf countries combined, this number goes above $18 billion.

Waqas Ghani, Head of Research at JS Global, says that if the money coming from the Gulf stops for any reason, Pakistan’s Current Account could go into deficit again. This fear is not unfounded as the UAE has already withdrawn a $3 billion support facility and there have been reports of some Pakistanis being deported. Tensions are rising in the Middle East, which makes this dependency even more dangerous.

On the other hand, a different picture emerges from Europe. Remittances from the European Union increased by 18% to $4.35 billion and from the UK to $5.17 billion. Experts say this is a sign that skilled Pakistanis are moving to Europe, Canada and Australia, which is a separate topic of discussion.

The real problem is that Pakistan is earning by sending people rather than selling goods. According to experts, this method does not work in the long run. Unless exports, industry and new sources of income are created, any external shock can shake the economy.