Qudsia Bano

Pakistani workers' remittances have recorded a significant increase, with an inflow of $3.6 billion in December 2025, reflecting robust growth in the country's foreign currency reserves, according to the recent data released by the State Bank of Pakistan. This marks a 16.5% increase compared to December of the previous year and a 12.6% rise when compared month-on-month, signaling a positive trend for Pakistan's remittance inflows.

The cumulative remittances for the first half of the fiscal year (1HFY26) reached $19.7 billion, a 10.6% increase from the $17.8 billion received in the same period last year. This growth reflects the continued financial contributions from overseas Pakistani workers, who play a crucial role in supporting the nation's economy and strengthening its foreign exchange reserves.

The remittances during December were largely sourced from key markets, including Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States of America.

Saudi Arabia remained the largest contributor with $813.1 million, followed by the UAE with $726.1 million. The UK and the USA also made substantial contributions, with inflows of $559.7 million and $301.7 million, respectively.

These increases in remittance inflows are part of a broader trend of resilient remittance growth, despite global economic challenges. Analysts have attributed the steady growth in remittances to various factors, including stronger monitoring systems, improved remittance channels, and consistent demand for labor in the Gulf region and other parts of the world.

As Pakistan continues to face economic challenges, the steady flow of remittances is expected to play a crucial role in bolstering the country’s foreign reserves and supporting national economic stability. The government is likely to continue its efforts to further encourage remittances, making the process easier and more accessible for Pakistani workers abroad.

In the coming months, remittances are expected to remain a key pillar of Pakistan's economic strategy, providing vital support to families back home and contributing to the nation’s economic growth.

Credit: INP-WealthPk