RECORDER REPORT

KARACHI: Workers’ remittances recorded a strong growth of 32.5 percent in the first eight months of FY25, the State Bank of Pakistan (SBP) reported on Monday.

According to the SBP, cumulatively, Pakistan received home remittance inflows amounting to $ 24 billion in July-Feb of FY25 compared to $ 18.1 billion arrived during the same period of last fiscal year (FY24).

Monthly data showed that home remittances witnessed a 38.6 percent year-on-year (YoY) growth in February 2025, while on a month-on-month (MoM) basis, inflows rose by 3.8 percent.

In February 2025, workers’ remittances increased by $116 million, reaching $3.119 billion, up from $3.003 billion in January 2025.

Remittances inflows during February, 2025 were mainly sourced from Saudi Arabia worth $744.4million, United Arab Emirates amounted to $652.2 million, United Kingdom $501.8 million and home remittances from United States of America were $309.4 million.

According to the State Bank of Pakistan (SBP), import volumes have been consistently rising, driven by increased economic activity and a surge in global commodity prices, which further elevated import payments in January. However, robust workers’ remittances, coupled with moderate growth in exports, played a crucial role in offsetting the impact of higher imports.

Analysts believe that strong home remittance inflows will not only ease pressure on the external account but also contribute to strengthening the SBP’s forex reserves.