Pakistan recorded an all-time high of USD 38.3 billion in remittances during fiscal year 2025, reflecting a 27% surge compared to USD 30.3 billion in 2024. Inflows were largely driven by overseas Pakistanis in Saudi Arabia, the UAE, the UK, and EU countries, positioning the country as the world’s fifth-largest remittance recipient and second in South Asia.
Yet, official data shows the cost of channeling these inflows through the Pakistan Remittance Initiative (PRI) skyrocketed by 70%, rising to Rs 124.14 billion from Rs 72.95 billion a year earlier. The State Bank of Pakistan attributed this surge to enhanced incentives under the Transfer to Cash Incentive Scheme (TTCIS), restoration of the Saudi corridor, sharp rupee depreciation against the Saudi riyal, and record remittance inflows.
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The Economic Coordination Committee (ECC) has now rationalized incentives to ease fiscal pressure. Since 2009, remittances have grown fivefold, surpassing exports as Pakistan’s largest foreign exchange source, while PRI’s network expanded from 25 to over 50 local financial institutions and nearly 400 international partners.
