Pakistan Sees 38.6% Increase in Remittances, Led by Saudi Arabia and UAE

In February 2025, Pakistan’s remittances surged by 38.6 percent year-on-year, totaling $3.1 billion. Notably, Saudi Arabia and the UAE were the largest contributors. Cumulative remittances increased by 32.5 percent from July to February FY25, reflecting significant economic influence as families depend more on support from overseas workers.

ISLAMABAD: Pakistan has experienced a remarkable increase in remittances, with a year-on-year growth of 38.6 percent, resulting in inflows of $3.1 billion in February 2025, as reported by the central bank. The most significant contributions originated from Saudi Arabia and the United Arab Emirates (UAE), underscoring their importance to Pakistan’s economy.

The remittances play a vital role for Pakistan, particularly in stabilizing foreign exchange reserves and supporting the balance of payments. The State Bank of Pakistan (SBP) confirmed that remittances during February 2025 reached $3.1 billion, reflecting a growth of 38.6 percent year-on-year and 3.8 percent month-on-month.

In February 2025, Saudi Arabia emerged as the top contributor, with remittances amounting to $744.4 million. The UAE followed closely, providing $652.2 million. The inflow from the United Kingdom was $501.8 million, while the United States contributed $309.4 million.

The cumulative remittances for the period from July to February FY25 totaled $24 billion, marking a 32.5 percent increase compared to $18.1 billion received in the same period of FY24. The SBP identified several factors enhancing these remittance inflows, including reforms to reduce illegal foreign exchange trading and incentives for remitters.

Furthermore, decreasing global inflation rates have prompted Pakistani migrants to send more money to their families back home. Amidst rising domestic inflation, families in Pakistan are increasingly relying on the financial support from relatives working abroad.

The significant 38.6 percent growth in remittances from February 2024 to February 2025, with total inflows reaching $3.1 billion, highlights the crucial role of foreign funds in bolstering Pakistan’s economy. Key contributors, particularly Saudi Arabia and the UAE, have underscored the importance of expatriates’ financial support amidst domestic inflation pressures. Continued reforms by the State Bank of Pakistan and improved global economic conditions will likely sustain this positive trend in remittances.

Original Source: www.arabnews.com