Editorial
Pakistan experienced a significant surge in workers’ remittances in February 2025, continuing a positive trend that bolstered the country’s foreign exchange reserves and overall economic stability. According to the latest data from the State Bank of Pakistan, remittances reached $3.12 billion in February, reflecting a 32.55% year-on-year growth. This marked an all-time high for remittances during the first eight months of FY25, totaling $24.0 billion, a notable increase from $18.1 billion in the same period last year.
The largest contributions came from Saudi Arabia, UAE, the UK, and the USA, with remittances from these regions showing impressive growth—Saudi Arabia rose by 34.6%, the UAE by 55.7%, and the UK by 32.24%. The growth was driven by several factors, including seasonal trends, improved banking channels, the upcoming Ramadan, and effective policies encouraging the use of official remittance channels over informal ones. The government and State Bank of Pakistan’s efforts, such as providing incentives for remittances through banks and cracking down on illegal transfers, have significantly boosted the use of formal channels.
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However, while these developments are positive, there remains untapped potential in digital currency and blockchain technology to further revolutionize the remittance sector. Blockchain-based systems could make remittance transactions faster, cheaper, and more transparent, improving financial inclusion, especially for Pakistan’s unbanked population. Although Pakistan currently bans cryptocurrency, the creation of the Pakistan Crypto Council (PCC) indicates a growing interest in developing a clear regulatory framework to integrate blockchain innovations, such as tokenizing real-world assets and establishing regulatory sandboxes. If successfully implemented, these initiatives could streamline remittances, further stabilize Pakistan’s foreign reserves, and boost economic growth.
