Remittances: A Lifeline

REMITTANCES sent by overseas Pakistanis continue to provide a vital lifeline to our economy. Workers’ remittances reached $3.6 billion in July 2026, registering a 13 per cent increase year-on-year and 4.5 per cent month-on-month. The importance of overseas Pakistanis becomes even clearer when viewed against last fiscal year’s performance. Workers’ remittances reached a historic high of $41.6 billion in FY2025-26, an increase of 8.6 per cent from the previous year, while goods exports stood at $30.8 billion, recording a five per cent decline. In other words, remittances surpassed the country’s total goods exports, underlining the extraordinary contribution of Pakistanis working abroad.

These inflows have become indispensable for the balance of payments, helping finance imports, support foreign exchange reserves and ease pressure on the external sector. But the contribution of overseas Pakistanis cannot be measured merely in dollars. Behind every remittance is a Pakistani worker, professional, engineer, technician or entrepreneur who is earning abroad and supporting families at home. They are, in every sense, an important national asset. The government must therefore give greater attention to their welfare and well-being, including better protection of their rights and stronger support through Pakistani missions abroad. At the same time, Pakistan needs to prepare and send more trained and skilled workers to international labour markets and actively pursue legal pathways for Pakistani manpower abroad. There is another opportunity that deserves equal attention. While Pakistan seeks foreign investment from international companies, overseas Pakistanis themselves constitute one of the country’s greatest investment resources. Many have accumulated capital, business experience and international networks that can be channelled into productive investment at home. A focused policy to attract their investment in manufacturing, technology, housing, agriculture, services and small businesses could generate employment and accelerate economic growth. Overseas Pakistanis have already demonstrated their commitment by sending their earnings home. The next step should be to create conditions that encourage them to invest those earnings in Pakistan as well.