Remittances from overseas Pakistani workers saw a substantial 38.6% year-on-year increase in February 2025, reaching $3.12 billion, according to data released by the State Bank of Pakistan (SBP) on Monday.
Between July and February of the current fiscal year (FY25), total remittances amounted to $24.0 billion, marking a 32.5% rise compared to the $18.1 billion received during the same period in FY24.
The key contributors to February’s inflows included Saudi Arabia ($744.4 million), the United Arab Emirates ($652.2 million), the United Kingdom ($501.8 million), and the United States ($309.4 million).
The government had initially set a target of $35 billion in remittances for FY25, expecting a $5 billion increase from the previous year. However, with an additional $5.9 billion received in just eight months, the total has already exceeded expectations.
While the surge in remittances has helped stabilize the rupee and strengthen the economy, financial analysts caution that an overreliance on remittances, rather than boosting exports, could pose long-term challenges to maintaining foreign exchange reserves.
