Islamabad, Feb 11: Overseas Pakistani remittances saw a significant 25% year-on-year (YoY) increase, reaching $3 billion in January 2025, up from $2.4 billion in January 2024, as per the latest data released by the State Bank of Pakistan (SBP). However, on a month-on-month (MoM) basis, inflows saw a slight decline of 3% compared to the $3.08 billion recorded in December 2024.
A detailed analysis of the data reveals that the highest contributions came from Saudi Arabia, with remittances amounting to $728 million. This was followed by inflows from the United Arab Emirates (UAE) at $622 million, the United Kingdom (UK) at $444 million, European Union (EU) countries at $354 million, and the United States (US) at $298 million.
Saudi Arabia maintained its position as the leading source of remittances, registering a robust 24% YoY increase. Meanwhile, inflows from the UAE surged by an impressive 53% YoY, highlighting strong growth in remittance activity. The UK also witnessed a steady rise of 22% YoY, further contributing to the overall increase. 
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Similarly, remittances from EU nations rose by 22% YoY, while transfers from the US experienced a more modest 5% YoY growth. This upward trajectory in inflows indicates the resilience of overseas Pakistani workers in supporting their families and the economy despite global financial uncertainties.
For the first seven months of the fiscal year 2025 (7MFY25), total remittances amounted to $20.85 billion, marking a substantial 32% YoY increase compared to the $15.8 billion recorded during the same period in FY24. This remarkable growth underscores the vital role of expatriate Pakistanis in bolstering the country’s foreign exchange reserves and stabilizing the economy.
The rise in remittances can be attributed to several factors, including improved banking channels, policy measures by the government, and incentives to encourage legal money transfers. The Pakistani diaspora continues to play a crucial role in driving economic progress, and sustained growth in remittance inflows is expected to support the nation’s economic stability in the coming months.
With increasing reliance on overseas remittances, economic experts emphasize the need for further facilitation of digital transactions and streamlined banking processes to ensure continued growth in inflows. The rising remittance figures serve as a testament to the unwavering financial support provided by Pakistanis working abroad.
