Pakistan Experiences Surge in Remittance Inflows Amid Currency Stability

Karachi: Pakistan witnessed its second-highest monthly remittance inflow in May 2025, reaching $3.7 billion, reflecting a 14 percent increase compared to the previous year. This significant rise is attributed to a seasonal influx typically seen around Eid and increased confidence in the stability of the Pakistani Rupee, aided by stricter foreign exchange regulations.

Over the first eleven months of the fiscal year 2025, overseas Pakistanis remitted a total of $35 billion, representing a 29 percent year-on-year growth. The increase in remittances has been further supported by a notable rise in emigration, particularly to Saudi Arabia, which accounted for 72 percent of the total emigration this year.

Remittance flows from the United Arab Emirates and Saudi Arabia showed a year-on-year increase of 13 percent and 12 percent, respectively, in May 2025. During the same eleven-month period, inflows from these two countries surged by 36 percent compared to the previous year.

However, data indicates a slowdown in labor exports to the UAE since last year. Any reversal in this trend could potentially lead to further increases in remittance inflows, bolstering the country’s economy.

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