Pakistan’s remittances grew by 38.6% year-on-year in February 2025, reaching $3.1 billion, with Saudi Arabia and UAE being top contributors. This influx aids in stabilizing the economy and supporting families amid inflation, reflecting a cumulative increase of 32.5% from July to February FY25 compared to the previous fiscal year.
Pakistan has experienced a substantial year-on-year increase of 38.6 percent in remittances, amounting to $3.1 billion in February 2025, as reported by the central bank. This surge is primarily fueled by significant contributions from Saudi Arabia and the United Arab Emirates, vital for stabilizing the nation’s ailing economy and foreign exchange reserves.
The State Bank of Pakistan (SBP) noted, “Workers’ remittances recorded an inflow of $3.1 billion during February 2025,” reflecting a 3.8 percent increase on a month-on-month basis as well. Key sources for these inflows were Saudi Arabia, contributing $744.4 million, and the UAE, which added $652.2 million to the total. Notably, the United Kingdom and the United States contributed remittances of $501.8 million and $309.4 million, respectively.
Overall, remittances during the period from July to February of FY25 reached $24 billion, reflecting a 32.5 percent increase compared to the $18.1 billion received in the same period of FY24. Multiple factors have contributed to this increase, including reforms aimed at reducing unauthorized foreign exchange trading and the implementation of enticing incentives by the SBP.
Additionally, the decline in global inflation rates has motivated Pakistani expatriates to remit more funds back home. Amidst rising domestic inflation, families in Pakistan increasingly depend on the financial support provided by relatives working overseas, ensuring their economic stability during difficult times.
In summary, Pakistan’s remittances have significantly surged, achieving a record increase of 38.6 percent in February 2025, driven predominantly by contributions from Saudi Arabia and the UAE. These inflows not only bolster the country’s foreign exchange reserves but also provide essential support to families amid domestic inflation. The initiatives taken by the State Bank of Pakistan and favorable global economic conditions have further incentivized this upward trend in remittances.
Original Source: www.arabnews.com
