By Staff Reporter
KARACHI: Pakistan’s remittances from overseas workers soared 31% in the first 10 months of fiscal year 2025, reaching a record $31.2 billion, compared to $23.9 billion in the same period the previous year, data from the State Bank of Pakistan (SBP) showed on Friday.
However, on a monthly basis, inflows declined 22% in April 2025 to $3.2 billion from $4.1 billion in March. Despite the monthly drop, April’s remittances still rose 13.1% year-on-year.
Prime Minister Shehbaz Sharif hailed the inflows as a testament to expatriates’ faith in the country’s economic direction.
“The record increase in remittances reflects the patriotism of Overseas Pakistanis and their confidence in the country’s economic policies,” Sharif said in a statement, noting their “central role” in driving development.
The funds, largely from Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States, have bolstered foreign exchange reserves and the balance of payments and narrowed trade gaps at a time when Pakistan faces war at its eastern boarder with India and global tariff turbulence.
In April, Saudi Arabia led with $725.4 million, down 26% from March’s $979.8 million but up 2% from $712.2 million a year ago. The UAE sent $657.6 million, a 22% monthly decline from $841.9 million yet a 21% jump from $542.5 million in April 2024. The UK contributed $535.3 million, off 22% from March’s $683.8 million but 33% higher than the $402.5 million recorded last year. The US rounded out the top sources with $302.4 million, down 28% from March’s $419.4 million.
The monthly dip aligns with seasonal patterns, as remittances typically peak in March due to Ramadan and Eid-ul-Fitr, when expatriates send extra funds for family celebrations.
Yet the year-on-year growth signals sustained momentum, driven by stable exchange rates and government efforts to channel funds through formal banking systems. These inflows have long been a bulwark for Pakistan, often surpassing foreign direct investment and rivaling export earnings in their economic impact.
Last month, State Bank Governor Jameel Ahmad projected a “substantial surplus” in the current account for fiscal 2025, describing it as the strongest external performance in two decades.
The $31.2 billion amassed so far—equivalent to roughly 10% of GDP—lends credence to that optimism, offering a buffer against external debt obligations and currency pressures. For a nation that has leaned on International Monetary Fund bailouts and bilateral loans, the remittance boom marks a vital lifeline for the country’s economy.
Copyright © 2021 Independent Pakistan | All rights reserved
