Pakistan’s remittances reached an impressive $3.1 billion in December 2024, marking a significant 29.3% increase compared to the same month last year, according to the latest data from the State Bank of Pakistan (SBP). This surge in remittances not only reflects a strong yearly growth but also a 5.6% rise from the previous month, showcasing a steady upward trend.
Over the first half of the fiscal year 2024-25 (July-December), Pakistan’s total remittance inflows amounted to $17.8 billion, a notable 32.8% increase from the $13.4 billion received during the same period in the previous fiscal year. This sharp rise in remittances is seen as a key indicator of Pakistan’s ongoing economic recovery, which has been supported by IMF loans, a stable local currency, and targeted incentives for banks and money exchangers.
Several factors have contributed to the growth in official remittance flows. Reforms aimed at curbing illegal foreign exchange trading, along with incentives from the SBP, have made formal channels more appealing. Additionally, global inflation rates have decreased, encouraging Pakistani migrants to send more money back home.
Dr. Khaqan Najeeb, former Advisor at the Ministry of Finance, emphasized that the expansion of Pakistan’s diaspora, higher earnings in key destination countries, and a stabilized exchange rate have been instrumental in this increase. He also noted that the rising cost of living in Pakistan has heightened the demand for financial support from overseas workers, making remittances even more critical for the country’s economy.
The primary sources of remittances in December 2024 were Saudi Arabia ($770.6 million), the United Arab Emirates ($631.5 million), the United Kingdom ($456.9 million), and the United States ($284.3 million). Other Gulf Cooperation Council (GCC) countries, including Oman, Qatar, Kuwait, and Bahrain, also contributed significant amounts.
As remittances continue to play a vital role in strengthening Pakistan’s foreign exchange reserves and supporting the balance of payments, both the central bank and the government are optimistic about reaching a record $35 billion in remittances by the end of the fiscal year 2025.
Prime Minister Shehbaz Sharif congratulated the nation on this milestone, describing the growth in remittances as proof of the unwavering commitment of Pakistan’s overseas community. He also emphasized that the country is on the path to economic growth following the achievement of economic stability. The government remains focused on national development and improving public welfare as it works towards further progress.
