Significant Growth in Pakistan’s Remittances Driven by Overseas Contributions

Pakistan’s remittances grew by 38.6 percent year-on-year in February 2025, totaling $3.1 billion. Saudi Arabia and the UAE were the top contributors, vital for the country’s economy. Cumulatively, remittances from July to February increased by 32.5 percent as reforms and lower inflation encouraged more financial support from abroad.

In February 2025, Pakistan reported a notable annual growth of 38.6 percent in remittances, totaling $3.1 billion, as stated by the central bank. Saudi Arabia and the United Arab Emirates emerged as the largest contributors to these remittances, which are essential for stabilizing the country’s foreign exchange reserves and aiding the balance of payments.

The State Bank of Pakistan (SBP) confirmed that remittances for February 2025 reached $3.1 billion, reflecting a monthly increase of 3.8 percent as well. Notably, Saudi Arabia contributed $744.4 million while the UAE added $652.2 million to the totals, followed by the United Kingdom and the United States at $501.8 million and $309.4 million, respectively.

From July to February of FY25, total remittance inflows accumulated to $24 billion, representing a significant increase of 32.5 percent compared to the $18.1 billion recorded in the same period of FY24. This growth can be attributed to various reforms designed to reduce illegal foreign exchange trading and new incentives from the SBP.

The rise in remittances is also linked to decreased global inflation rates, prompting Pakistani migrants to send more financial support home. As inflation continues to burden families in Pakistan, reliance on financial assistance from relatives abroad has markedly increased.

In conclusion, Pakistan’s remittance inflow of $3.1 billion in February 2025, driven predominantly by contributions from Saudi Arabia and the UAE, underscores their significance in stabilizing the national economy. The cumulative rise of 32.5 percent from the previous fiscal year, coupled with state reforms and decreased global inflation, highlights the vital role of overseas workers in supporting families back home amidst economic challenges.

Original Source: www.arabnews.com