Pakistan received $3.1 billion in workers’ remittances in February 2025, marking a 38.6 percent year-on-year increase, according to the State Bank of Pakistan (SBP).
However, on a month-on-month basis, the remittances rose by 3.8 percent.
From July 2024 to February 2025, total remittances stood at $24 billion, reflecting a 32.5 percent rise compared to $18.1 billion in the same period of the previous financial year.
The largest contributor was Saudi Arabia, sending $744.4 million, followed by the UAE ($652.2 million) and the UK ($501.8 million).
The SBP attributes the rise in remittances to economic recovery, a stable rupee, and incentives for banks and exchange companies. Additionally, an increase in skilled Pakistani workers migrating abroad has boosted inflows.
These funds remain critical for Pakistan’s economy, helping bridge the current account deficit and supporting households amid inflationary pressures.
Earlier to this, the SBP’s Monetary Policy Committee (MPC) decided to maintain the policy rate at 12 percent, following a sharp reduction from 22 percent in June 2024.
Despite market expectations of a 50-100 basis points cut, the MPC opted for stability, citing concerns over rising food and energy prices.
Inflation in February 2025 fell to 1.52 percent, its lowest level in months. However, macroeconomic stability remains a key focus, with the SBP closely monitoring potential risks in the coming months.
