Pakistan’s remittances surge to $3.1 billion in Feb, marking 55% YoY growth

Pakistan’s remittance inflows reached an all-time high of $3.1 billion in February 2025, marking an impressive 55% year-on-year growth compared to $2.3 billion in February 2024.

This significant increase highlights the growing trust of overseas Pakistanis in the country’s financial system and their critical role in supporting economic stability.

The cumulative remittances for July to February FY25 have soared to $24 billion, reflecting a 32% increase from the $18.3 billion recorded in the same period last year.

The largest contributors to these inflows were Saudi Arabia, the UAE, the UK, the EU, and the US. Saudi Arabia led with $744 million, followed by the UAE with $652 million, while remittances from the UK, EU, and US stood at $501 million, $340 million, and $309 million, respectively.

The surge in remittances is attributed to several factors, including improved digital financial services, which have made money transfers more efficient and secure.

The government’s initiatives, such as Roshan Digital Accounts and incentives for formal remittance channels, have also played a vital role in boosting inflows. Additionally, favorable exchange rate policies have encouraged expatriates to send money through official banking channels, reducing reliance on informal transactions.

This substantial increase in remittances has significantly strengthened Pakistan’s foreign exchange reserves, providing much-needed liquidity and reducing pressure on external debt and international borrowing. It has also helped boost investor confidence, reinforcing economic resilience and attracting further investments.

Moving forward, the government aims to sustain this positive trend by enhancing digital and financial banking channels, introducing new incentives for formal remittance pathways, and expanding bilateral cooperation with key remittance-sending countries to ensure smooth and secure transactions.

With overseas Pakistanis demonstrating unwavering support for their families and the country’s economy, continuous engagement and financial reforms will be crucial in maintaining this upward momentum in remittance inflows.