Drawing strength from economic reforms and a crackdown on illegal channels such as hundi and hawala, remittances sent home by overseas workers soared 25.2% to $3 billion in January 2025, up from $2.397 billion in the same period a year ago.
The surge is attributable to economic recovery, bolstered by the International Monetary Fund (IMF) bailout, stable rupee, incentives for banks and exchange companies, and the growing trend of skilled Pakistani workers emigrating.
Cumulatively, for the seven months (July-January) of fiscal year 2025 (7MFY25) remittances sent home by Pakistani diaspora, hit a massive $20.8 billion, up 31.7% than $15.8 billion received during the same period of FY2024. However, January remittances came out 3.2% lower than the $3.1 billion recorded in December 2024.
According to analysts, key factors driving the increase in official inflows include reforms that have curbed illegal foreign exchange trading and incentives implemented by the SBP. Furthermore, global inflation rates have decreased, encouraging Pakistani migrants to send more money back home.
They also pointed out that with soaring inflation at home, families are relying more on financial support from relatives working abroad.
The steady flow of remittances has been crucial in keeping the country’s external account stable.
Saudi Arabia led the January remittances as Pakistani workers in the kingdom sent $728.3 million home.
The January remittances from Saudi Arabia were 5.5% lower month-on-month, but 24% higher than the $587.4 million year-on-year.
United Arab Emirates (UAE) saw an uptick by 0.37% month-on-month, from $619.4 million in December to $621.7 million in January, while inflows jumped year-on-year by almost 53% against $407.6 million in January 2024.
Inflows from the United Kingdom dropped 3% to $443.6 million from $456.9 million the last month of the previous year, while improving 22% year-on-year. Remittances from the US increased 5% to $298.5 million month-on-month, according to the central bank.
PTI’s call for boycotting remittances
The former ruling party had announced a civil disobedience movement if their demands — the release of political prisoners and a judicial probe into the events of the May 9, 2023 and November 26 crackdown — go unmet.
In December 2024, jailed PTI founder Imran Khan urged his supporters in Pakistan and abroad to kick off an anti-government movement by withholding remittances in its initial phase.
However, remittances sustained their surge, with the country not only posting a year-on-year increase in December but also recording a 5.6% jump from November 2024, as the government mocked the PTI leader’s failed call for a boycott.
Even the Prime Minister felicitated the nation on the record increase in foreign remittances. “The claims of those who had been chanting to halt the country’s economy had proven to be baseless,” the premier said in a statement.
“Record increase in the foreign remittances reflects the strong commitment of the overseas Pakistanis for playing their role in the development of the country,” PM Shehbaz added.
