Pakistan’s remittances surged by 25.2% in January 2025, reaching $3 billion compared to $2.397 billion in the same month last year, according to the State Bank of Pakistan (SBP). The increase is attributed to economic recovery, support from an International Monetary Fund (IMF) bailout, a stable rupee, and incentives offered to banks and exchange companies. Additionally, a rise in skilled Pakistani workers emigrating has contributed to the upward trend.
For the first seven months of the 2024-25 fiscal year (July-January), remittances totaled $20.8 billion, marking a 31.7% increase from the $15.8 billion recorded during the same period in the previous fiscal year. However, January’s inflows were 3.2% lower than the $3.1 billion received in December 2024.
Analysts cite several key factors behind the increase in formal remittance channels, including stringent measures against illegal foreign exchange trading and incentives introduced by the SBP. The decline in global inflation has also enabled Pakistani expatriates to send more money home.
With inflation remaining high domestically, families are increasingly dependent on financial support from overseas relatives. The steady inflow of remittances has played a crucial role in maintaining stability in the country’s external accounts.
Among the major sources of remittances, Saudi Arabia led in January with $728.3 million, reflecting a 24% year-on-year rise, despite a 5.5% decline from December. The United Arab Emirates saw a slight 0.37% month-on-month increase, reaching $621.7 million, a significant 53% jump compared to January last year.
Meanwhile, remittances from the United Kingdom decreased by 3% month-on-month to $443.6 million but registered a 22% year-on-year increase. The United States saw a 5% rise in inflows, reaching $298.5 million compared to the previous month.
PTI’s Call for a Remittance Boycott Fails to Impact Inflows
The surge in remittances persisted despite a call for a boycott by the Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan. The former prime minister, who remains incarcerated, had urged supporters at home and abroad to withhold remittances as part of a civil disobedience movement, demanding the release of political prisoners and a judicial inquiry into events on May 9, 2023, and the November 26 crackdown.
However, remittances continued to rise, recording a year-on-year increase in December and a 5.6% jump from November 2024. The government dismissed the boycott appeal as ineffective, with the prime minister lauding overseas Pakistanis for their role in economic progress.
“The claims of those seeking to halt the country’s economy have been proven baseless,” the premier stated, adding that the record remittance inflows reflect the unwavering commitment of expatriates to Pakistan’s development.
