Pakistan has witnessed a sharp rise in remittances sent by overseas workers, with inflows increasing significantly during the current fiscal year.
According to data released by the State Bank of Pakistan (SBP), remittances have shown both monthly and yearly growth, reflecting strong contributions from Pakistani communities abroad.
The State Bank reported that remittance inflows increased by 20% on a monthly basis and 15% on a yearly basis.
Overall, Pakistan received approximately $38 billion in remittances during the first eleven months of the current fiscal year, marking an increase of around $3 billion compared to the same period last year.
The steady rise highlights continued financial support from overseas Pakistanis to the domestic economy.
Saudi Arabia leads remittance contributions
In May, Pakistanis working in Saudi Arabia sent the highest amount of remittances, totaling around $1.2 billion.
The United Arab Emirates (UAE) followed closely with approximately $1 billion, while Pakistani expatriates in the United Kingdom contributed around $650 million.
These three countries remained the largest sources of remittance inflows during the month.
According to SBP data, contributions from other regions were also significant.
- Pakistanis in the European Union sent approximately $460 million
- Workers in other Gulf countries contributed around $400 million
- The United States accounted for nearly $350 million in remittances during May
These figures show a broad global contribution from the Pakistani diaspora across multiple regions.
Economic experts suggest that changes in regional conditions, particularly in the Middle East, may be influencing remittance behavior.
They note that many overseas Pakistanis are increasingly transferring funds back home amid shifting economic and geopolitical conditions.
However, overall inflows remain strong, indicating continued confidence and financial engagement from expatriates.
Impact on Pakistan’s economy
Remittances remain one of Pakistan’s most important sources of foreign exchange, helping stabilize the country’s external accounts.
The recent surge provides crucial support to the economy, particularly in managing import payments and maintaining currency stability.
PM Shehbaz expresses satisfaction over record $3.4bn in remittances
Prime Minister Shehbaz Sharif has expressed satisfaction over the record $3.4 billion in remittances sent by overseas Pakistanis.
The prime minister welcomed the inflow of remittances to the country and described the increase as encouraging.
He said overseas Pakistanis sent 20.2 per cent more remittances on a monthly basis, reflecting their continued contribution to the national economy.
The prime minister said the confidence of overseas Pakistanis in the country's economy and their positive participation remain a valuable national asset.
He praised the role of Pakistanis living abroad and acknowledged their contribution towards economic stability through remittance inflows.
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