Pakistan’s remittances grew by 38.6% year-on-year in February 2025, totaling $3.1 billion. Key contributors included Saudi Arabia and the UAE. This inflow supports Pakistan’s economy by stabilizing foreign reserves and balance of payments. For July-Feb FY25, total remittances reached $24 billion, spurred by SBP reforms and reduced global inflation.
In February 2025, Pakistan witnessed a remarkable year-on-year increase of 38.6 percent in remittances, amounting to $3.1 billion, as reported by the State Bank of Pakistan (SBP). This surge is crucial for stabilizing the country’s economy, bolstering foreign exchange reserves, and aiding the balance of payments.
The SBP noted that remittances rose by 3.8 percent from the previous month. Contributions were strongest from Saudi Arabia, amounting to $744.4 million, and the UAE, with $652.2 million. The UK and the US also made significant contributions, with remittances of $501.8 million and $309.4 million, respectively.
For the period from July to February FY25, total remittances reached $24 billion, a 32.5 percent increase compared to $18.1 billion during the same timeframe in FY24. This growth is attributed to effective reforms against illegal foreign exchange trading and various incentives from the SBP that have motivated Pakistani migrants to remit more.
Furthermore, lower global inflation rates have encouraged overseas workers to send additional funds home. Simultaneously, families in Pakistan increasingly depend on these remittances for financial support amid rising domestic inflation.
The significant growth in remittances highlights the crucial role of overseas Pakistani workers in supporting the country’s economy. The contributions from nations like Saudi Arabia and the UAE, combined with SBP reforms, have fostered an environment conducive to increased financial inflow, aiding Pakistan’s fiscal stability.
Original Source: www.arabnews.com
