ISLAMABAD: Pakistan recorded year-on-year growth of 38.6 percent in remittances with inflows of $3.1 billion in February, the central bank said on Monday, with the highest contributions coming from Saudi Arabia and the UAE.
Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments.
“Workers’ remittances recorded an inflow of $3.1 billion during February 2025,” the State Bank of Pakistan (SBP) said in a press release. “In terms of growth, remittances increased by 38.6 percent and 3.8 percent on year-on-year and month-on-month basis respectively.”
In February 2025, Pakistan received its highest inflows from Saudi Arabia, $744.4 million, followed by the UAE, which contributed $652.2 million. Remittances received from the United Kingdom and the United States stood at $501.8 million and $309.4 million respectively.
“Cumulatively, with an inflow of $24 billion, workers’ remittances increased by 32.5 percent during July to February, FY25 compared to $18.1 billion received during July to February FY24,” the central bank added.
Among factors driving an increase in remittances are reforms that have curbed illegal foreign exchange trading and incentives implemented by the State Bank of Pakistan. Decreased global inflation rates have encouraged Pakistani migrants to send more money back home.
Families in Pakistan are also relying more on financial support from relatives working abroad due to inflation at home.
