Remittances: Pakistan's lifeline

An opinion column in The Express Tribune argues that remittances have become one of Pakistan's central macroeconomic pillars. Workers' remittances reached $41.58 billion in FY2026, up from $38.30 billion a year earlier, an 8.6% rise. No month fell below $3 billion, with the peak of $4.25 billion recorded in May 2026.

The writer asks whether these inflows can move beyond household survival toward savings, investment and jobs. Nationally, remittances make up 7.77% of monthly household income according to HIES 2024-25, but the share is 18.22% in Khyber-Pakhtunkhwa and only 0.90% in Balochistan. The column also cites local research showing recipient households have 19% to 21% higher consumption than comparable households without remittances.

The column stresses that formal financial services and institutional infrastructure determine whether recipients save and invest, a pattern it links to Punjab and Khyber-Pakhtunkhwa. It describes the inflation impact of a remittance shock as mild and temporary, and calls for products aimed at small savers, women and rural households. The author also warns that labour export cannot alone build prosperity, urging policies that move remittances from consumption toward growth.