KARACHI: Home remittance inflows maintained strong growth, reaching $20.8 billion mark in the first seven months of the current fiscal year (FY25), the State Bank of Pakistan (SBP) reported on Monday.
According to the SBP, workers’ remittances registered a robust 32 percent growth during July-January FY25. Pakistan received $20.8 billion in home remittances during this period, compared to $15.8 billion in July-January FY24, reflecting an increase of $5 billion.
Saudi Arabia remained the largest contributor to Pakistan’s remittance inflows, accounting for 24.7 percent of total receipts during the period under review. Remittances from the Kingdom surged by 34 percent to $5.15 billion in July-January FY25.
Meanwhile, inflows from the United Arab Emirates (UAE) recorded an even stronger growth, rising by 54 percent to $4.205 billion in July-Jan FY25, compared to $2.736 billion in the same period last fiscal year.
During the first seven months of this fiscal year, the United Kingdom (UK) also saw a notable increase, with remittances reaching $3 billion, reflecting a 30 percent growth. Similarly, inflows from the United States (USA) stood at $2.1 billion, marking a 12.5 percent rise compared to the corresponding period in FY24. Analysts said this notable growth in remittances from key corridors highlights the continued support of overseas Pakistanis, playing a crucial role in stabilizing the country’s external finances.
On a monthly basis, remittance inflows stood at $3.0 billion in January 2025, marking a 25.2 percent year-on-year (YoY) growth from $2.4 billion in January 2024. However, remittances saw a slight decline of 2.5 percent in January 2025 compared to December 2024, when inflows totaled $3.08 billion.
Remittance inflows during January 2025 were mainly sourced from Saudi Arabia worth $728.3 million, UAE $621.7 million, UK $443.6 million and USA amounted to $298.5 million.
The steady rise in home remittance inflows has played a crucial role in easing pressure on Pakistan’s external account. According to the SBP, strong workers’ remittances and export earnings contributed to a $0.6 billion surplus in the current account during December 2024. This pushed the cumulative surplus of the current account to $1.2 billion in the first half of FY25.
Encouraged by these positive trends, particularly the sustained growth in remittance inflows, the current account outlook has significantly improved. The SBP now anticipates the current account balance to fluctuate between a small surplus and a deficit of 0.5 percent of GDP in FY25. Analysts said this stability could enhance economic resilience, boost foreign exchange reserves, and reduce dependence on external borrowing.
Copyright Business Recorder, 2025
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