Pakistan’s remittances reached $3.1 billion in December, showing a 29.3% increase compared to the same month last year. This significant rise highlights the financial contributions of overseas Pakistanis during challenging economic times.
According to the State Bank of Pakistan (SBP), remittance inflows also grew by 5.6% compared to the previous month. The total remittances during the first half of the fiscal year 2024-25 (July-December) amounted to $17.8 billion. This reflects a 32.8% increase from $13.4 billion received during the same period in the last fiscal year.
The surge in workers’ remittances is closely tied to Pakistan’s improving economic landscape. Factors such as loans from the International Monetary Fund (IMF), a stable local currency, and new incentives for banks and money exchangers have played a significant role. The growing trend of skilled Pakistani workers emigrating abroad has also contributed to the increase.
Key reforms by the SBP have curbed illegal foreign exchange trading, further boosting official remittance flows. Additionally, lower global inflation rates have encouraged overseas Pakistanis to send more money back home.
Dr. Khaqan Najeeb, a former Advisor at the Ministry of Finance, stated that several factors have driven this growth. “The expansion of the Pakistani diaspora, higher earnings in major destination countries, and exchange rate stabilization have encouraged formal remittance channels. Improved digital infrastructure has also made sending money easier,” he said.
He added that rising inflation in Pakistan has increased the demand for financial support from families abroad. “These higher remittances have been crucial in managing Pakistan’s external accounts,” Dr. Najeeb noted.
The SBP reported that Saudi Arabia contributed the largest share of remittances in December, amounting to $770.6 million. Other major sources included the UAE ($631.5 million), the UK ($456.9 million), and the USA ($284.3 million).
Additional inflows came from Gulf Cooperation Council (GCC) countries such as Oman ($108.5 million), Qatar ($89.2 million), Kuwait ($71.1 million), and Bahrain ($41.2 million).
Remittances from the Pakistani diaspora are a vital source of foreign exchange for the country. They not only bolster foreign reserves but also support the balance of payments.
Both the SBP and the government project that remittances will reach a record $35 billion by the end of the fiscal year 2024-25.
