Pakistan recorded a 38.6 percent increase in remittances year-on-year, amounting to $3.1 billion in February 2025, primarily from Saudi Arabia and the UAE. The total remittances from July to February reached $24 billion, driven by several factors, including reforms by the State Bank of Pakistan and increased reliance on financial support from relatives abroad amidst domestic inflation.
In February 2025, Pakistan experienced a remarkable year-on-year growth in remittances, soaring by 38.6 percent to reach $3.1 billion, as reported by the central bank. The primary contributors to this growth were Saudi Arabia and the UAE, which significantly bolstered Pakistan’s economy by providing essential financial support.
According to the State Bank of Pakistan (SBP), the remittances grew by 3.8 percent month-on-month, highlighting a consistent upward trend. The inflows from Saudi Arabia topped the list at $744.4 million, with the UAE following closely at $652.2 million. Contributions from the UK and the US were also notable, amounting to $501.8 million and $309.4 million, respectively.
From July to February in FY25, total remittances reached $24 billion, reflecting a substantial increase of 32.5 percent compared to the same period in FY24, which recorded $18.1 billion. This trend underscores the growing significance of remittances for Pakistan’s economy, particularly in stabilizing foreign exchange reserves and improving the balance of payments.
Several factors have contributed to this surge in remittances, including reforms that have successfully curtailed illegal foreign exchange trading. Additionally, incentives from the State Bank of Pakistan and decreasing global inflation rates have motivated Pakistani migrants to increase their financial support. Furthermore, domestic inflation has prompted families in Pakistan to depend more heavily on assistance from their relatives abroad.
In conclusion, Pakistan’s remittances have demonstrated significant growth, particularly from Saudi Arabia and the UAE, illustrating their crucial role in the nation’s economy. The central bank’s reforms and incentives, combined with a reliance on overseas support due to local inflation, have fostered a robust inflow of funds, thereby enhancing the country’s economic stability.
Original Source: www.arabnews.com
