Workers’ remittances surge 25% in January to $3bn

February 10, 2025 (MLN): Workers’ remittances recorded an inflow of $3 billion in January 2025, witnessing a 25.2% increase compared to the same period last year, according to data released by the State Bank of Pakistan (SBP).

Cumulatively, remittances for the first seven months of FY25 (Jul-Jan) surged to $20.8bn, compared to $15.8bn in 7MFY24, up by 31.7%.

Saudi Arabia remained the top contributor, with remittance inflows reaching $728.3m, followed by the United Arab Emirates at $621.7m.

The United Kingdom and the United States also saw significant contributions, recording $443.6m and $298.5m, respectively.

The sharp rise in remittances is attributed to incentives for formal banking channels, a stable exchange rate, and increased overseas earnings by Pakistani workers.

Analysts fraternity is of the view that sustained growth in remittances will provide crucial support to Pakistan’s foreign exchange reserves and economic stability in the months to come.

Explanatory Note

When migrants send home part of their earnings in the form of either cash or goods to support their families, these transfers are known as workers’ remittances.

Workers’ remittances are one of the major sources of foreign exchange earnings for Pakistan.

"For many countries, money transfers from citizens working abroad are a lifeline for development," says Dilip Ratha of the World Bank.

These inflows have financed Pakistan’s trade and primary income deficit significantly over the last half-century.

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