Karachi, January 10, 2025 – Pakistan recorded an impressive $17.85 billion in remittances from its expatriates during the first half (July–December) of the fiscal year 2024-25, showcasing a robust 38% year-on-year (YoY) increase compared to $13.44 billion received during the same period last fiscal year.
The latest data, released by the State Bank of Pakistan (SBP), highlights the growing confidence of expatriates in remitting funds back home, thanks to a series of facilitative measures implemented by the SBP. These initiatives include digitization of banking channels, streamlined money transfer processes, and enhanced incentives aimed at overseas Pakistanis. Additionally, the relatively stable exchange rate over the past months has played a crucial role in driving these inflows.
The consistent growth in remittances underscores the significant role of Pakistan’s diaspora in supporting the country’s economy. For December 2024, remittances reached $3.08 billion, marking a substantial 29.3% YoY growth compared to $2.38 billion in December 2023. On a month-on-month (MoM) basis, the remittances increased by 5.6%, reflecting the continued upward trend in inflows.
The rise in remittances is crucial for Pakistan as it helps alleviate the country’s persistent foreign exchange challenges. These funds also contribute to bolstering Pakistan’s current account balance, providing a much-needed buffer against external economic pressures. Over the years, remittances have remained one of the largest sources of foreign exchange for Pakistan, consistently outpacing earnings from exports.
Analysts attribute this surge to the confidence-building measures by the SBP and government policies that prioritize engagement with the Pakistani diaspora. Various incentives, such as higher returns on investment schemes for overseas Pakistanis and specialized remittance-focused initiatives like Roshan Digital Accounts, have been pivotal in attracting these record-breaking inflows.
As Pakistan faces challenges in its external debt obligations and foreign reserves, the remittance surge offers a silver lining. It not only reflects the unwavering commitment of expatriates to their homeland but also highlights the potential of targeted economic policies in driving sustainable growth for Pakistan.