KARACHI: Workers’ remittances to Pakistan rose sharply in December, led by inflows from Saudi Arabia, according to data released by the State Bank of Pakistan (SBP) on Friday. The inflows provided crucial support to foreign exchange reserves and the country’s balance of payments.
Remittances remain a key source of hard currency for Pakistan. They have shown resilience despite global economic uncertainty and continue to support the rupee and stabilize reserves as the country operates under an International Monetary Fund (IMF) bailout program.
The central bank said workers sent home $3.6 billion in December 2025. Remittances grew 16.5 percent year-on-year and 12.6 percent month-on-month.
On a cumulative basis, inflows also recorded strong growth in the current fiscal year.
“During the first half of FY26, workers’ remittances totaled $19.7 billion,” the SBP said. “This marks an increase of 10.6 percent compared with $17.8 billion received during the same period last year.”
For the full fiscal year 2024–25, remittances reached a record $38.3 billion, up from about $30.3 billion a year earlier. The rise reflects strong labor migration to Gulf countries and increased use of formal banking channels.
Saudi Arabia remained the largest source of remittances in December, sending $813.1 million. The United Arab Emirates followed with $726.1 million. The United Kingdom contributed $559.7 million, while the United States accounted for $301.7 million.
Economists say remittances play a critical role in Pakistan’s economy. They help finance imports, support household consumption and reduce reliance on external borrowing.
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Millions of Pakistanis work overseas, mainly in Saudi Arabia and the UAE. Government and central bank efforts to promote formal transfer channels have improved transparency and helped sustain inflows.
