Pakistan’s remittances surged by 38.6% in February 2025, topping $3.1 billion, primarily from Saudi Arabia and the UAE. This growth is crucial for stabilizing the economy amidst local inflation, with cumulative remittances for FY25 reaching $24 billion, a 32.5% increase compared to the previous year.

In February 2025, Pakistan experienced a remarkable growth in remittances, achieving a year-on-year increase of 38.6 percent with inflows reaching $3.1 billion, as reported by the State Bank of Pakistan (SBP). This surge in remittances is primarily attributed to significant contributions from key international donors, notably Saudi Arabia and the United Arab Emirates (UAE).

The remittance inflows play a crucial role in stabilizing Pakistan’s fragile economy, enhancing foreign exchange reserves, and assisting in the balance of payments. The SBP specifically noted, “Workers’ remittances recorded an inflow of $3.1 billion during February 2025,” highlighting a month-on-month growth of 3.8 percent as well.

During this month, Saudi Arabia emerged as the top contributor with remittances amounting to $744.4 million, followed closely by the UAE at $652.2 million. The United Kingdom and the United States also contributed significantly, providing $501.8 million and $309.4 million, respectively.

Cumulatively, remittances during the period from July to February FY25 reached $24 billion, marking a robust increase of 32.5 percent compared to the $18.1 billion received in the same duration of FY24. The surge is largely driven by reforms targeting illegal foreign exchange trading and incentives offered by the SBP.

Moreover, a decline in global inflation rates has encouraged Pakistani migrants to remit more funds back home. Families in Pakistan increasingly depend on financial support from relatives working abroad as local inflation continues to challenge their economic stability.

In conclusion, Pakistan has witnessed a substantial increase in remittances, notably driven by contributions from Saudi Arabia and the UAE. This inflow is pivotal in supporting the nation’s economy, foreign reserves, and balance of payments. With ongoing reforms and improved financial mechanisms, the trend of growing remittances is expected to continue as families increasingly rely on support from overseas.

Original Source: www.arabnews.com

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