Govt, PTI trade barbs as monthly remittances see surge

KARACHI/ ISLAMABAD/LAHORE: Remittances rose by 32.8 percent to $17.8 billion in six months through December, compared with $13.4 billion in the same period last year, the central bank said on Friday.

The cash sent home by the expatriates increased by 29.3 percent year-on-year to $3.1 billion in December. On a month-on-month basis, these inflows rose by 5.6 percent.

The ongoing increase in remittances can be attributed to several factors, particularly the continuous flow of funds through official banking channels following the country’s crackdown on unofficial buying and selling of dollars.

This growth in remittance flows reflects a renewed confidence in the Pakistani rupee and tighter regulatory controls in the foreign exchange market.

A report from Ismail Iqbal Securities published last month indicated that another significant driver of remittance growth is the rising number of Pakistanis working abroad, especially in the Gulf region, Europe, and North America.

“This migration, coupled with the evolving global economic conditions, has led to a steady rise in remittance flows,” the report said.

“Many of these workers are sending more money back home to support their families or invest in local businesses, contributing significantly to the nation’s external account,” it added.

The report anticipates that remittances will continue to play a crucial role in stabilising Pakistan’s economy and supporting its external balance.

Mustafa Mustansir, head of research at Taurus Securities, stated that if the current trend continues, remittances might reach $36 billion this fiscal year or possibly even higher, especially with the upcoming holy month of Ramazan, during which remittances historically tend to increase.

Asked whether there were any threats to the $36 billion remittance forecast, he responded, “Not really. I think we should be able to achieve it. I perceive more upside risks than downside risks.”

“Healthy remittances will continue to support a stable current account for Pakistan, which is crucial for the external position,” Mustansir added.

Governor State Bank of Pakistan Jameel Ahmad expects remittances to exceed $35 billion in the current fiscal year.

He notes that Pakistan’s external debt stands at $100.08 billion, with the balance of payments under control, and December’s current account expected to show a surplus.

Pakistan recorded a current account surplus of $944 million in the five months of the fiscal year 2025, compared with a deficit of $1.67 billion during the same period last year.

As of January 3, the SBP’s foreign exchange reserves amounted to $11.7 billion — enough to cover over two months of imports.

Pakistan is seeking to secure a $1 billion loan tranche from the International Monetary Fund as a part of the $7 billion Extended Fund Facility programme. The next IMF review is due this quarter.

This week, Prime Minister Shehbaz Sharif announced that the United Arab Emirates (UAE) had agreed to roll over a $2 billion debt due this month.

According to the SBP, out of total external payments of $26.1 billion, $10.4 billion has already been paid or rolled over. The remaining debt repayment for the fiscal year, excluding planned rollovers, stands at $5 billion.

APP reports: Meanwhile, Prime Minister Shehbaz Sharif Friday felicitated the nation on record increase in foreign remittances in December 2024, saying the claims of those who had been chanting to halt the country’s economy had proven to be baseless.

The foreign remittances during December 2024 increased to US$3.1 billion against November 2024, posting month-on-month growth of 5.6%.

In a press statement, the prime minister said the remittances witnessed a record growth of 29.3% in December 2024 against same month (December 2023) of last year.

“Record increase in foreign remittances reflects the strong commitment of the overseas Pakistanis for playing their role in development of the country,” the prime minister said.

After achieving economic stability, Pakistan is now on the path of economic growth, the prime minister said, adding that the government was determined to ensure national development and public welfare.

Sher Ali Khalti reports: Meanwhile, felicitating the nation on record increase in foreign remittances and resumption of the Pakistan International Airline’s first flight to Europe after a four-year hiatus, the ruling Pakistan Muslim League-Nawaz (PMLN) mocked the Pakistan Tehreek-e-Insaf’s (PTI) civil disobedience call saying it had fallen flat.

“Congratulations to the nation on the morning of prosperity as the anarchists’ night comes to an end... the overseas Pakistanis have rejected those who called for civil disobedience,” Punjab Senior Minister Marriyum Aurangzeb said in a statement on Friday.

She said Prime Minister Shehbaz Sharif was following the legacy of Quaid Muhammad Nawaz Sharif and PMLN to steer Pakistan toward progress.

Marriyum highlighted that the overseas Pakistanis had sent home record $3.1 billion remittances in December 2024, which was 29.3% higher than December 2023.

“This is a clear rejection of Imran Khan’s call to stop sending dollars to Pakistan. The people of Pakistan and overseas Pakistanis have strongly responded to the call for civil disobedience,” said the minister.

After four and a half years, the PIA flights to Europe have resumed.

Marriyum pointed out that the same detractors who had harmed the national assets through their statements in Parliament and jeopardized the livelihoods of PIA pilots were now silent.

She criticized the previous incompetent and unqualified government for turning the lowest inflation of 2018-2019 into record-high inflation, ruining foreign policy, inviting the IMF back, halting CPEC projects, reviving terrorism, and accumulating historic debt.

Geo reports: Meanwhile, PTI Information Secretary Sheikh Waqas Akram Friday said the impact of their appeal to the expatriates to stop sending remittances home would be visible in the next two to three months.

Addressing a press conference in Peshawar, he said remittances in the fiscal year 2022 were $32 billion, while in 2024 they were $27 billion.

He said the growth rate in 2022 was 6.5 percent and in 2024 it was less than 2.4 percent.

Khyber Pakhtunkhwa Chief Minister’s Finance Advisor Muzammil Aslam said hollow visions only came in the PMLN government, but Uraan Pakistan had reached its limit. Uraan Pakistan says the growth rate will remain at 9.98 percent from 2030 to 2047.

He said Khyber Pakhtunkhwa had a total debt of Rs725 billion adding that Shehbaz took this much debt in just one week and now the people of Punjab were asking how we had improved the economy.

Bilal Azhar Kayani, Convener National Parliamentary Task Force on Sustainable Development Goals, also echoed the ruling party’s sentiments, saying the increase in remittances was a “categorical rejection” by overseas Pakistanis of the PTI’s call to boycott remittances.“[This is] an additional proof of Pakistan’s consistent macroeconomic improvement under PM Shehbaz Sharif,” he said in a post on X (formerly Twitter). Furthermore, Kayani said the increase was evidence of the critical contribution overseas Pakistanis consistently make to Pakistan’s economy.