Khurram Schehzad

Pakistan received a record $41.6 billion in workers’ remittances in FY26, an 8.6% increase compared to FY25, according to the State Bank of Pakistan. Key remittance sources in June included Saudi Arabia ($829.6 million) and the UAE ($792.3 million), while the government surpassed its revised target despite Gulf region uncertainties.

Barclays upgraded Pakistan's dollar bonds to 'overweight' due to improved oil market prospects and economic stability, citing stronger fiscal positions and external buffers. The report recommended specific sovereign bonds and a credit default swap, while noting potential credit rating upgrades in 2026.

Finance Minister Muhammad Aurangzeb will present the federal budget for FY2026-27 on June 12. The Pakistan Economic Survey for FY2025-26 will be launched after 2:20pm the next day. A consensus was reached between the federal government, PML-N, and PPP on the budget framework, including freezing provincial shares in the NFC award.

Pakistan recorded its highest-ever monthly remittance inflow of $4.3 billion in May, a 20.2% increase from April and 15.4% higher than May 2023. Saudi Arabia contributed the most at $1.025 billion, followed by the UAE, UK, and US. Experts note weaker growth compared to FY25 due to concerns over exchange rates and diverted inflows.