Saudi Arabia leads surge as Pakistan’s May remittances hit $3.7 billion

A dealer counts US dollars at a money exchange market in Karachi on March 2, 2023. (AFP/File)
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Updated 11 June 2025
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Saudi Arabia leads surge as Pakistan’s May remittances hit $3.7 billion

  • Inflows bring total remittances for July-May FY2024-25 to $34.9 billion, a 28.8 percent increase from $27.1 billion in same period last year
  • Saudi Arabia remained largest contributor in May, sending $913.9 million, followed by UAE ($754.2 million), UK ($588.1 million), US ($314.7 million)

KARACHI: Pakistan received $3.7 billion in workers’ remittances in May 2025, a strong 16 percent increase month-on-month and 13.7 percent year-on-year, the State Bank of Pakistan (SBP) said on Wednesday, with Saudi Arabia remaining the largest contributor, sending $913.9 million.

The inflows brought total remittances for July-May FY2024-25 to $34.9 billion, marking a 28.8 percent increase from $27.1 billion in the same period last year. The rise follows a record breaking $4.1 billion in March, the highest-ever single-month inflow, and a robust $3.2 billion in April. 

The strong performance has helped offset Pakistan’s trade deficit and support its fragile foreign exchange reserves amid continued macroeconomic pressure.

“This is the highest level of remittances recorded in recent months,” the SBP said in a statement, noting that the increase reflected stronger flows from key corridors and a growing shift toward formal remittances channels. 

Analysts attribute the surge to a combination of factors, including improved exchange rate management, government crackdowns on hawala and hundi informal systems for transferring money internationally, and seasonal flows during Ramadan and Eid.

Saudi Arabia remained the largest contributor in May, sending $913.9 million, followed by the United Arab Emirates ($754.2 million), the United Kingdom ($588.1 million), and the United States ($314.7 million).

Remittances remain a critical source of foreign exchange for Pakistan, which is currently under a $7 billion IMF program and facing over $24 billion in external debt repayments over the next fiscal year.

The central bank has raised its full-year remittance forecast to $38 billion, reflecting optimism that flows will continue to support economic stabilization.

The surging remittances, especially from Saudi Arabia, help cushion Pakistan’s chronic current‑account deficit and bolster its foreign exchange reserves, offering relief ahead of major debt repayments. With global commodity prices still volatile and external financing constrained, continued inflows from overseas workers, particularly from the Gulf, are seen as crucial to maintaining macroeconomic stability and supporting Pakistan’s growth outlook under IMF conditions.


Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

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Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

  • The amendments allow for QR-based verification, authentication controls, biometric expansion, and card format updates
  • The measures advance integrated digital governance through National Data Exchange Layer and broader digital ID ecosystem

ISLAMABAD: Pakistan has notified amendments to the National Identity Card and Pakistan Origin Card rules and introduced QR-based verification and stronger fraud controls, the National Database and Regulatory Authority (NADRA) said on Tuesday, amid efforts to strengthen the country’s digital ecosystem.

The amendments modernize Pakistan’s identity document framework by legally embedding QR-based verification, strengthening authentication controls across digital services, expanding biometric recognition and updating card formats for key citizen categories.

A core reform is the statutory introduction of the Quick Response (QR) code as a defined security and verification feature, authorizing the use of “QR code or any other technological feature” in lieu of current microchip enabling NADRA to adopt evolving verification technologies without repeated rule amendments.

This QR-enabled capability directly strengthens Pakistan’s Digital ID ecosystem and supports interoperability through the National Data Exchange Layer, according to the national database regulator.

“This establishes a robust legal basis for quick and secure verification of identity credentials in both offline and online environments,” NADRA said.

“This will also enable all citizens to carry similar card instead of currently prevalent two types of national identity cards one of which is with microchip and the other without.”

Pakistani state media reported in August that the country was developing digital identities of all its citizens to enable secure and efficient payments. The measures came as part of a broader effort to digitize the economy for greater transparency.

QR-based credentials allow rapid front-end validation of identity attributes in service delivery settings, while also enabling back-end systems to confirm authenticity and status through trusted exchanges. This is expected to improve speed, transparency and consistency of identity verification across government entities and regulated sectors, reduce manual handling, and lower the risk of fraud and impersonation, according to NADRA.

The amendments also strengthen the enforcement effect of card suspension. The Rules now clarify that where a card is suspended, all verification, authentication and related services linked to that card shall stand suspended forthwith. This closes a key risk area by ensuring that once a card is suspended, it cannot continue to be used through digital verification channels or institutional authentication processes.

“The amendments also introduce standardized identification for residents of Azad Jammu and Kashmir by requiring an inscription indicating ‘Resident of Azad Jammu and Kashmir’ in the manner specified by the Authority, thereby ensuring uniform geographic identification on the document,” NADRA said.

“Overall, these amendments strengthen the legal and technological foundations of Pakistan’s identity system by enabling secure QR-based verification, reinforcing the integrity of digital authentication services, improving biometric assurance,” it said. “They also advance readiness for integrated digital governance by supporting structured interoperability through the National Data Exchange Layer and a broader Digital ID ecosystem.”