Remittances sent by overseas Pakistani workers surged by an impressive 38.6% year-on-year in February 2025, reaching $3.12 billion, according to data released by the State Bank of Pakistan (SBP) on Monday.
Between July and February of FY25, total remittances amounted to $24.0 billion—a 32.5% increase compared to $18.1 billion received during the same period in FY24.
February’s remittance inflows were primarily driven by contributions from Saudi Arabia ($744.4 million), the United Arab Emirates ($652.2 million), the United Kingdom ($501.8 million), and the United States ($309.4 million).
The government had initially projected total remittances of $35 billion for FY25, a $5 billion rise from the previous year. However, with an additional $5.9 billion pouring in over just eight months, remittances have already surpassed expectations.
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While this rise has provided stability to the rupee and offered vital support to the economy, economists and financial analysts point out a mixed picture. The growing reliance on remittances, rather than enhancing export performance, raises concerns about the government’s long-term approach to sustaining foreign exchange reserves.
