Pakistan’s economy just got a major boost—overseas Pakistanis sent a whopping $3.1 billion in remittances this February, marking a 38.6% year-on-year jump, according to the State Bank of Pakistan (SBP).
A Steady Climb in Inflows
Despite a slight 3.8% month-on-month dip, the overall remittance flow from July 2024 to February 2025 reached $24 billion—a solid 32.5% increase from the previous year. Saudi Arabia led the way with $744.4 million, followed by the UAE ($652.2 million) and the UK ($501.8 million).
The surge is fueled by economic recovery, a stable rupee, and incentives for banking channels. More skilled workers emigrating abroad has also added to the rising inflows, which continue to be a lifeline for Pakistan’s economy, helping cover the current account deficit and supporting households battling inflation.
Policy Rate Holds at 12%
Meanwhile, SBP has kept the policy rate steady at 12%, following a drastic cut from 22% last June. While many expected a further reduction, the Monetary Policy Committee (MPC) held its ground, citing risks from rising food and energy prices.
With inflation dipping to 1.52% in February, all eyes are on the central bank’s next move. For now, remittances remain a game-changer, proving once again that overseas Pakistanis are a financial backbone for the country.