Karachi, February 10, 2025 – The State Bank of Pakistan (SBP) reported on Monday that workers’ remittances have witnessed a significant surge of approximately 32% during the first seven months (July–January) of the fiscal year 2024-25, highlighting a robust inflow of foreign currency into the country.
According to the SBP, workers’ remittances reached a total inflow of $20.8 billion during this period, marking a sharp increase from $15.8 billion recorded in the corresponding months of the previous fiscal year. This translates to a remarkable growth rate of 31.7%, underscoring the resilience of remittances as a key source of foreign exchange for Pakistan.
In January 2025 alone, workers’ remittances stood at $3.0 billion, reflecting a Year-on-Year (YoY) growth of 25.2%. The consistent rise in remittance inflows highlights the pivotal role of overseas Pakistanis in supporting the country’s economy, particularly in stabilizing foreign exchange reserves.
The SBP further detailed that the primary sources of these remittances were Saudi Arabia, contributing $728.3 million, followed by the United Arab Emirates with $621.7 million. The United Kingdom and the United States also played significant roles, with remittances amounting to $443.6 million and $298.5 million, respectively.
Economists attribute the notable increase in remittances to multiple factors, including improved banking channels, government incentives to facilitate legal remittance transfers, and the strengthening of digital payment solutions. Moreover, fluctuations in exchange rates have incentivized expatriates to remit higher amounts, further bolstering the country’s foreign currency reserves.
The surge in remittances is expected to positively impact Pakistan’s balance of payments and foreign exchange reserves, alleviating external financial pressures. Policymakers remain optimistic that continued improvements in remittance inflows will contribute to economic stability and provide a much-needed cushion against external vulnerabilities.
With remittances playing a crucial role in Pakistan’s economic framework, authorities are focused on enhancing financial policies to sustain and further accelerate this upward trajectory. As global economic conditions evolve, Pakistan’s reliance on remittances remains a key factor in shaping the country’s macroeconomic outlook.