Saudi Arabia leads Pakistan's remittance growth with 25.2% increase in Jan

Pakistan’s remittances from July 2024 to January 2025 hit $20.8B, marking a 31.7% increase from last year.

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Saudi Arabia remained the largest source of workers' remittances to Pakistan, contributing $728.3 million in January 2025, according to the State Bank of Pakistan (SBP).

This marked a significant 25.2% rise in remittances compared to previous months, a vital lifeline for Pakistan's economy, which has been grappling with an ongoing economic crisis.

The country’s foreign exchange reserves have plummeted, and its currency has weakened against the US dollar, forcing Pakistan to seek financial assistance from international lenders.

Overall, Pakistan's total remittance inflows for January reached $3 billion, with substantial contributions from other countries such as the United Arab Emirates ($621.7 million), the United Kingdom ($443.6 million), and the United States ($298.5 million).

From July 2024 to January 2025, Pakistan saw cumulative remittances amounting to $20.8 billion, a 31.7% increase from the same period last year when it recorded $15.8 billion.

This surge in remittances comes as a crucial support to Pakistan's financial situation, particularly in stabilising the country's foreign exchange reserves.

In December 2024, Pakistan's remittances saw a 29.3% year-on-year growth, reaching $3.1 billion. This boost in financial inflows is considered essential for Pakistan’s recovery efforts, especially after securing a $7 billion loan from the International Monetary Fund (IMF) in September 2024.