ISLAMABAD: Saudi Arabia remained the largest source of workers’ remittances to Pakistan that rose by 25.2% in January, Pakistan’s central bank said on Monday, with Riyadh contributing $728.3 million in inflows to the South Asian nation.
The Kingdom is a key destination for Pakistani workers, whose remittances are vital to Pakistan’s economy amid an ongoing economic crisis that has seen its foreign exchange reserves plummet to low levels and its currency weaken against the US dollar, forcing it to seek financial assistance from global lenders and friendly countries.
Workers’ remittances recorded an inflow of $3 billion in the month of January, according to the Pakistani central bank.
“Remittances inflows during January 2025 were mainly sourced from Saudi Arabia ($728.3 million), United Arab Emirates ($621.7 million), United Kingdom ($443.6 million) and United States of America ($298.5 million),” the State Bank of Pakistan said in a statement.
Cumulatively, the SBP said, workers’ remittances recorded an inflow of $20.8 billion from July 2024 till January 2025, compared to $15.8 billion during the same period in the previous year, depicting a growth of 31.7%.
In December 2024, Pakistan’s remittances clocked in at $3.1 billion, marking a 29.3% year-on-year growth.
The South Asian country, which secured a $7 billion International Monetary Fund (IMF) facility last September, is navigating a tricky path to economic recovery and this surge in remittances is considered vital to stabilizing the country’s foreign exchange reserves.
Saudi Arabia remains top contributor as Pakistan remittances increase 25.2% year-on-year
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Saudi Arabia remains top contributor as Pakistan remittances increase 25.2% year-on-year
- Kingdom contributed $728.3 million to total inflows of $3 billion to the South Asian nation last month
- Remittances are vital to Pakistan, which has seen its foreign exchange reserves plummet to low levels
IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’
- Fund backs sale of national airline as key step in divesting loss-making state firms
- IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities
KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).
The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.
Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.
“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.
“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.
The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.
Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.
Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.
