Remittances jump 38.6% year-on-year to hit $3.1bn in Feb

Pakistan received $3.1 billion in workers' remittances in February 2025, up 38.6% year-on-year from $2.2 billion a year earlier and 3.8% higher than in January, State Bank of Pakistan (SBP) data showed on Monday.

Analysts attribute the upswell 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.

From July to February (8MFY25), remittances sent home by overseas workers reached $24.0 billion, marking a massive 32.5% increase from $18.1 billion in the same period last year.

Key factors driving the increase in inflows include reforms, curbing illegal foreign exchange trading and incentives implemented by the SBP. Also, tame global inflation rates are also 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 remained the top source of workers’ remittances in February 2025, with inflows of $744.4 million, followed by the UAE ($652.2 million), UK ($501.8 million), and the US ($309.4 million).

'Boycott 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.