Overseas Pakistanis drive 33pc growth in remittances

In the ongoing fiscal year, Pakistan has witnessed a substantial rise in remittances sent by overseas Pakistanis, hitting a remarkable $17.845 billion during the first six months, which is half of the annual target set at $35 billion. This influx marks a significant 33 percent increase compared to $13.435 billion received during the same period last year, showcasing an impressive contribution of $4.41 billion. Particularly noteworthy is the $3.1 billion remitted in December alone, which represents a 29.3 percent increase from the same month in the previous year and a 5.6 percent increase over November 2024. Notably, the increase in remittances is credited to a crackdown on illegal money transfer systems, a decrease in dollar smuggling and more stable exchange rates, resulting in heightened confidence among those sending money back home. Furthermore, a growing number of Pakistanis who emigrated in 2023 likely began contributing, bolstering these figures even further. During this period, the Arab countries accounted for 55 percent of total remittances received, with Saudi Arabia and the UAE leading the way in terms of contribution. The Prime Minister of Pakistan, Shehbaz Sharif, recognized this growth as a positive sign, asserting that claims about the economy halting were unfounded, while also indicating that these remittances play an important role in the nation's development. Overall, the remittance increases appear to signal not only a strong commitment from the Pakistani diaspora, but also an upward trend in financial flows that could aid Pakistan's economic stability and growth aspirations. The State Bank of Pakistan has expressed optimism regarding this trend and its potential positive impact in the coming year.