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- Kingdom contributed $728.3 million to total inflows of $3 billion to the South Asian nation last month
- Remittances are vital to Pakistan, which has seen its foreign exchange reserves plummet to low levels
ISLAMABAD: Saudi Arabia remained the largest source of workers’ remittances to Pakistan that rose by 25.2% in January, Pakistan’s central bank said on Monday, with Riyadh contributing $728.3 million in inflows to the South Asian nation.
The Kingdom is a key destination for Pakistani workers, whose remittances are vital to Pakistan’s economy amid an ongoing economic crisis that has seen its foreign exchange reserves plummet to low levels and its currency weaken against the US dollar, forcing it to seek financial assistance from global lenders and friendly countries.
Workers’ remittances recorded an inflow of $3 billion in the month of January, according to the Pakistani central bank.
“Remittances inflows during January 2025 were mainly sourced from Saudi Arabia ($728.3 million), United Arab Emirates ($621.7 million), United Kingdom ($443.6 million) and United States of America ($298.5 million),” the State Bank of Pakistan said in a statement.
Cumulatively, the SBP said, workers’ remittances recorded an inflow of $20.8 billion from July 2024 till January 2025, compared to $15.8 billion during the same period in the previous year, depicting a growth of 31.7%.
In December 2024, Pakistan’s remittances clocked in at $3.1 billion, marking a 29.3% year-on-year growth.
The South Asian country, which secured a $7 billion International Monetary Fund (IMF) facility last September, is navigating a tricky path to economic recovery and this surge in remittances is considered vital to stabilizing the country’s foreign exchange reserves.