Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

A man counts Saudi Riyal banknotes in Riyadh, Saudi Arabia, in this October 18, 2017 photo. (Reuters/ file)
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Updated 10 March 2025
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Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

  • In Feb. 2025, Pakistan received highest inflows from Saudi Arabia, $744.4 million, followed by UAE, which contributed $652.2 million
  • Among factors driving up remittances are reforms to curb illegal foreign exchange trading and incentives implemented by central bank 

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. 


Pakistan positions itself as ‘bridge builder’ to ease Middle East tensions as PM visits Saudi Arabia

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Pakistan positions itself as ‘bridge builder’ to ease Middle East tensions as PM visits Saudi Arabia

  • Islamabad says it is engaging regional capitals to keep diplomatic channels open amid Iran conflict
  • Foreign Office says Pakistan policy on Afghanistan unchanged amid cross-border militant attacks

ISLAMABAD: Pakistan is positioning itself as a bridge builder to help ease rising tensions in the Middle East, with Prime Minister Shehbaz Sharif traveling to Saudi Arabia for talks focused on regional peace and security, the Foreign Office said on Thursday.

Sharif left earlier in the day for what officials described as a brief visit to the Kingdom at a time when the region is facing heightened volatility after the United States and Israel launched airstrikes against Iran. Subsequently, Tehran said it was targeting American military bases in Gulf states, prompting condemnations from these countries, which said several strikes had hit civilian infrastructure.

The spillover of the conflict in the region has complicated diplomatic efforts aimed at calming the situation, but the Foreign Office spokesperson, Tahir Andrabi, said Pakistan had been in regular contact with capitals across the region since the crisis erupted and is trying to keep channels of communication open.

“And we are playing the role of a bridge builder in a sense that our principal position on issues with respect to sovereignty, international law and the UN Charter and with respect to dialogue and diplomacy is respected in all regional capitals,” Andrabi said during the weekly press briefing.

He said Prime Minister Sharif’s visit to Riyadh should be seen as part of ongoing coordination between Pakistan and Saudi Arabia on regional stability.

“The Prime Minister’s visit to Saudi Arabia is part of the coordination between Pakistan and Saudi Arabia on matters of regional peace and security and ending violence and hostilities,” he said.

“The Prime Minister’s visit should also be seen in the broader context of Pakistan’s efforts to advocate and facilitate an early cessation of hostilities and violence in the region, with the aim of paving the way for dialogue and diplomacy.”

Islamabad has condemned both the strikes on Iran and the retaliatory attacks launched from Iranian territory against Gulf states, urging all sides to show restraint and resolve their differences through diplomatic means.

“As you know, Pakistan had condemned the unwarranted attacks against the Islamic Republic of Iran,” Andrabi said, warning that such actions risk further destabilizing an already tense region. At the same time, he added, Pakistan had also condemned attacks carried out from Iran against Gulf states including Saudi Arabia, Bahrain, Jordan, Kuwait, Qatar and the United Arab Emirates, calling them violations of sovereignty.

He said Pakistan has remained diplomatically engaged since the crisis began. Deputy Prime Minister and Foreign Minister Ishaq Dar has spoken with his counterparts from several countries in the region to discuss the evolving situation.

The prime minister also held a telephone conversation on Wednesday with Iranian President Masoud Pezeshkian, during which the two leaders discussed regional developments.

Andrabi said Pakistan’s position was firmly rooted in international law and the principle that disputes should be resolved through dialogue.

PAK-AFGHAN CLASHES

Separately, the Foreign Office said Pakistan’s policy toward Afghanistan remains unchanged despite continued tensions over cross-border militant attacks.

“There is no qualitative change in our relations, in our way of how we engage with Afghanistan,” Andrabi said.

Pakistan has repeatedly accused the Afghan authorities of harboring militant groups and facilitating their cross-border attacks, an allegation denied by Kabul.

The two countries have witnessed fierce border clashes amid mounting tensions, with Pakistan saying it has targeted militant hideouts inside Afghanistan.

“We have emphatically communicated to the Afghan side and to our interlocutors that we need verifiable assurances from the Afghan side that their territory will not be used for terrorism against Pakistan,” Andrabi said.

“Since those assurances have not been received, we will continue with our existing policy with respect to that country.”

He said Pakistan reserved the right to respond to attacks originating from Afghan territory.

“We are under attack ... and in exercise of our right to self-defense, we do reserve the right to respond to these attacks.”