How long will Pakistan's economy be ‘indebted’ to expats?

Pakistan’s external accounts drew substantial support from overseas workers in FY26, with remittances of $41.6 billion exceeding merchandise exports of $30.8bn. Dawn’s October 26 analysis contrasts those flows with net FDI of $1.67bn and a $1.19bn net withdrawal in portfolio investment.

The article says remittances provide foreign exchange and support households, but do not by themselves build productive capacity. It also highlights $4.6bn in IT and IT-enabled services exports, and argues that investment quality and export-generating capacity matter alongside reserve levels.

For the opening month of FY27, goods exports rose 9.4pc to $3.01bn while imports increased 13.4pc to $6.15bn. The current-account deficit narrowed to $328m from $529m a year earlier, with remittances and improved services and primary-income balances contributing to the change.