Remittances

El Salvador, Guatemala, and Honduras received $15.85 billion in remittances from January to April 2026, a 10.7% increase from the previous year. Guatemala received $8.43 billion, Honduras $4.13 billion, and El Salvador $3.29 billion, with Honduras showing the fastest growth at 14.3%.

The State Bank of Pakistan (SBP) has abolished the Sohni Dharti Remittance Programme (SDRP) and Telegraphic Transfer Charges Incentive Scheme (TTCIS), effective July 1, 2026, following IMF scrutiny. The incentives, which cost up to Rs120bn annually, were discontinued to address concerns over non-performance-linked financial allocations. Banks will continue offering free remittance transfers to users despite the scheme’s termination.

Regional instability in the Gulf is negatively impacting Pakistan's economic outlook, causing declines in foreign direct investment, domestic bond inflows, and foreign equity investments in FY26. Pakistan faces a $35bn trade deficit and relies heavily on remittances, while analysts warn that Gulf tensions could deter foreign investors despite growing diplomatic ties with Gulf nations.

GAESA, a business empire owned by Cuba's armed forces, controls approximately 40% of the Cuban economy and holds around $14.5 billion in overseas accounts according to leaked documents. The entity operates across sectors including tourism, retail, banking, ports, and remittances, while maintaining secrecy by not publishing financial accounts.

PTI, the main opposition party, rejected Pakistan's Rs18.8 trillion federal budget for FY2026-27, criticizing it as prioritizing elite interests over economic recovery and民生 challenges. The party accused the government of relying on remittances and foreign borrowing while imposing taxes that disproportionately burden the poor and small businesses.

Pakistan’s trade deficit widened by 17.48% year-on-year to $34.76 billion in the first 11 months of FY26, driven by a 5.94% rise in imports to $62.66 billion and a 5.61% decline in exports to $27.91 billion. Structural issues, including heavy reliance on energy imports and a narrow export base dominated by textiles, perpetuate the imbalance, with energy imports alone surging 13.7% to $14.9 billion.

Pakistan's foreign exchange reserves are nearing $18 billion for FY26, but a widening trade deficit of $34.76 billion threatens reserves and remittances. Experts warn of a potential current account deficit, depreciation pressure on the rupee, and challenges from upcoming foreign debt payments.

The Movement blockchain network has expanded its stablecoin payment initiatives by securing access to payment infrastructure in the US, Canada, and the EU, focusing on stablecoin settlement and remittances.

Pakistan faces pressure to implement deep structural economic reforms rather than relying on remittances as a long-term solution. The article argues that depending indefinitely on remittances masks underlying economic weaknesses and is unsustainable for long-term resilience.

Western Union has launched a stablecoin on the Solana blockchain for remittances. This move aims to improve the efficiency and speed of cross-border transactions. The launch is expected to have a significant impact on the global remittance market.

The Philippines has warned agencies against sending seamen to the Persian Gulf due to the ongoing Iran conflict, disrupting deployment pipelines for migrant workers. Government restrictions on high-risk countries threaten livelihoods and the economy, as remittances account for nearly 10% of GDP.

The article discusses how declining remittances from the Gulf are exacerbating Asia's energy crisis. It questions whether workers displaced from the Gulf could find opportunities in East Asia, potentially shifting labor dynamics.