Karachi, March 10, 2025 – The inflow of workers’ remittances has surged by an impressive 32.5% during the first eight months (July–February) of the fiscal year 2024-25, according to data released by the State Bank of Pakistan (SBP) on Monday.
This substantial rise in remittances underscores the critical role played by overseas Pakistanis in strengthening the national economy through their continued financial contributions.
Cumulatively, workers’ remittances reached a remarkable $24 billion during July–February FY25, reflecting a significant increase from the $18.1 billion received in the corresponding period of FY24. This surge highlights the growing trust of overseas workers in Pakistan’s economic stability and financial system, as well as favorable exchange rate policies encouraging the use of formal banking channels for remittances.
In February 2025 alone, the country recorded an inflow of $3.1 billion in workers’ remittances, marking a strong contribution to foreign exchange reserves and providing much-needed liquidity to the economy. The month witnessed a 38.6% Year-on-Year (YoY) increase compared to February 2024, while on a Month-on-Month (MoM) basis, remittances showed a 3.8% uptick from January 2025.
Breaking down the sources of these inflows, a substantial portion of workers’ remittances originated from key overseas labor markets. Saudi Arabia led the chart with an inflow of $744.4 million, followed by the United Arab Emirates (UAE) with $652.2 million. The United Kingdom contributed $501.8 million, while the United States of America accounted for $309.4 million. These figures reflect the strong financial engagement of Pakistani expatriates residing in these regions.
The significant rise in workers’ remittances can be attributed to various factors, including enhanced digital banking services, incentives provided by the government to attract foreign inflows, and economic recovery in major host countries. Additionally, initiatives aimed at curbing informal money transfer channels have encouraged the use of official banking networks, ensuring a steady and transparent flow of remittances into the national economy.
As Pakistan continues to rely on these vital financial inflows, policymakers are expected to introduce further measures to sustain and enhance remittances, supporting economic stability and foreign exchange reserves in the long run.
