Pakistan saw a 38.6% increase in remittances to $3.1 billion in February 2025, with Saudi Arabia and the UAE as primary contributors. Cumulative remittances of $24 billion from July to February FY25 marked a 32.5% increase compared to the previous year. Key factors influencing this growth include regulatory reforms and families relying on abroad support amidst domestic inflation.
In February 2025, Pakistan experienced a substantial year-on-year growth of 38.6 percent in remittances, amounting to $3.1 billion, as reported by the central bank. The principal contributors to this increase were Saudi Arabia and the United Arab Emirates, which are vital to the nation’s foreign exchange reserves and aid in stabilizing its economy.
The State Bank of Pakistan (SBP) disclosed that February 2025 witnessed remittance inflows of $3.1 billion, reflecting a month-on-month growth of 3.8 percent. Notably, Saudi Arabia accounted for $744.4 million of these remittances, followed closely by the UAE, contributing $652.2 million. Additional contributions came from the United Kingdom at $501.8 million and the United States at $309.4 million.
From July to February FY25, cumulative remittances reached $24 billion, representing an increase of 32.5 percent compared to $18.1 billion during the same period in FY24. This rise can be attributed to reforms aimed at reducing illegal foreign exchange trading and incentives introduced by the SBP, alongside a decline in global inflation encouraging Pakistani migrants to remit additional funds.
Moreover, as inflation at home persists, families in Pakistan increasingly depend on financial support from relatives working overseas, further amplifying the remittance inflows that are crucial for sustaining the country’s economy.
In conclusion, remittances to Pakistan witnessed a remarkable increase of 38.6 percent year-on-year, indicating the significant role of expatriate contributions in the nation’s economy. The major sources of these funds are Saudi Arabia and the UAE, with reforms and reduced inflation spurring higher inflows. Such financial support from abroad is crucial for families facing domestic inflation, thereby stabilizing Pakistan’s economic landscape.
Original Source: www.arabnews.com
