Rising remittances, falling exports
Pakistan is receiving more dollars from overseas Pakistanis while earning less at home, slowing momentum from its own productive economy. This is the paradox confronting policymakers: remittances are rising strongly, but exports are struggling to maintain their pace, trade deficit is widening, foreign direct investment remains weak and domestic investment is insufficient to create jobs for a rapidly growing young population. The latest remittance figures are certainly encouraging. Workers' remittances reached $3.66 billion in August 2026, up 16.5% year-on-year and 0.7% from July. During the first two months of FY2027, remittance inflows stood at $7.29 billion, an increase of 14.7% over the corresponding period, compared with exports in the same period at $5.46 billion.